On the afternoon of the 17th, at the Kumho Tire factory in Sochon-dong, Gwangsan-gu, Gwangju. The building, which once produced rubber, a tire material, was charred black on the outside, and the internal rebar had melted down, creating a precarious appearance. Perhaps due to the heavy rain that day, the factory was dreary. There were no employees inside, and banners reading 'Opposition to factory downsizing' from the labor union and 'We deeply apologize for the concerns caused by the fire' from management were flapping.
Two months have passed since a fire broke out at the Kumho Tire Gwangju Plant No. 2 on May 17, but there is still a long way to go before the situation is resolved. Kumho Tire was expected to announce a 'fire recovery roadmap for the Gwangju factory' earlier this month, but it stated that more time is needed before the official announcement. As the recovery measures are delayed, the dissatisfaction of about 2,400 employees who are waiting at home indefinitely and the local community waiting for compensation is growing.
Kumho Tire is reportedly considering three options: ▲ restarting operations at Plant No. 1, which was unaffected by the fire at the Gwangju factory; ▲ transferring to the Hampyeong Bitgreen Industrial Complex; and ▲ constructing a new plant in Europe. The industry does not have high expectations for the chances of restarting Plant No. 1 or the Hampyeong transfer.
The Hampyeong transfer has been a matter Kumho Tire has been pursuing since 2019, and while the site contract has already been completed, a re-evaluation is necessary given the current situation. A local official noted, '(For the factory to be transferred) the current Gwangju factory site must be sold, and transferring equipment will cost a lot of money. Considering the revenue damage caused by the fire, it would be burdensome to transfer everything to Hampyeong at once.' This official also questioned the feasibility of restarting Plant No. 1, saying, 'Is it possible to operate a different process when there is no smelting process for making tire materials?'
As the resolution of the situation is delayed, the burden on Kumho Tire's labor-management relations and the local community grows. Currently, over 2,400 employees, including those in production and management positions, are receiving 70% of their regular salary. This includes government employment retention subsidies that started this month and will end in December, six months later. After that, the company must bear their full wages due to the labor-management collective agreement, which stipulates that 70% of wages must be paid in the event of a suspension of work.
The Korean Metal Workers' Union Kumho Tire Branch held a rally on the 17th in front of the Kumho Tire headquarters in Jongno-gu, Seoul, demanding job security for all workers, rapid resumption of operations at Gwangju Plant No. 1, and the establishment of a factory with an annual production capacity of 14 million tires, calling it a 'roadmap disclosure deception protest.' The union stated, 'The management's excuse that securing funds is difficult is a flimsy excuse that lacks coherence,' and demanded that the union's demands be included in the roadmap and disclosed as soon as possible.
The closure of the factory has also impacted nearby businesses. A café owner near the Gwangju factory said, 'Employees used to flock here every lunchtime, but since the fire, there are no customers at lunch. Sales have dropped by more than one-third.'
The owner of a restaurant near the Gwangju factory said, 'It's less today because it's raining, but even now, the smell from the fire hasn't dissipated. Sales have dropped by more than half.' Another restaurant owner said, 'Kumho Tire is said to provide compensation to the local residents who were affected, but the scale of compensation is only about the rent for the store,' adding, 'I've received a lot of documents to prove the damage, but there has been no contact, which is frustrating.'
Kumho Tire stated that the number of reported damage claims is high, resulting in a lengthy review process. Kumho Tire noted, 'We are doing our best in recovery and compensation for the damage,' and added, 'Once the agreement between labor and management is finalized, we will disclose the fire recovery roadmap.'