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Creditors offer final concessions over brand dispute between Kumho, China's Doublestar

All News 17:20 July 07, 2017

SEOUL, July 7 (Yonhap) -- Creditors of Kumho Tire Co. on Friday decided to offer final concessions to resolve a dispute surrounding the usage fee of the Kumho brand between the tiremaker's parent company and China's Qingdao Doublestar Co.

The concessions came after a meeting earlier in the day with Kumho Tire's creditors, which are led by state-run Korea Development Bank.

Under the concessions, Qingdao Doublestar is required to pay 0.5 percent of its sales as a brand usage fee to Kumho Asiana Group for 12 years and six months, according to officials who attended the meeting.

Kumho Asiana must inform creditors of whether it will accept the concessions or not by next Friday.

Qingdao Doublestar signed a 955 billion won (US$827 million) deal in March to acquire a 42-percent stake in Kumho Tire, but the process of acquisition hit a snag over how much the Chinese company should pay for the use of the Kumho brand name.

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