[THE INVESTOR] Kumho Asiana Group Chairman Park Sam-Koo has refused to share Kumho's trademark rights with Qingdao Doublestar, which was recently selected as the preferred bidder for Kumho Tire. 

“I will not permit the use of Kumho Tire trademark,” Park was quoted as saying in an interview with Korean daily Hankook Ilbo on April 28. 

Park claims that Kumho Industrial -- which holds the trademark rights of Kumho brand -- has not reached any kind of agreement with Kumho Tire creditors on using the logo. So far, Kumho Tire has paid Kumho Industrial an annual 6 billion won (US$4.41 million) amounting to 0.2 percent of its sales as royalties.

The creditors had granted the trademark rights as part of the stake sale. “But this was done without Kumho’s consent,” Park said.  

Park had previously sought to buy back the nation's No.2 tiremaker, but lost the initial bid to Doublestar. Despite it, he had maintained that he would do everything in his power to regain Kumho Tire.  

As the largest shareholder of Kumho Holdings -- which owns a controlling 46.1 percent stake in Kumho Industrial -- Park has a say in the trademark issue. Unless he helps the involved parties reach an agreement, the acquisition deal could fall apart, industry watchers say. 

If it breaks over the next five months, Doublestar could lose its priority bidder status and Park could obtain another chance to practice his buyback rights of the former tire-making affiliate. 

Earlier in March, Doublestar entered into a stock trade agreement with the creditors to take over a controlling stake in Kumho Tire for 955 billion won (US$842.51 million).

Park had until April 19 to decide if he will practice his preemptive rights by offering more than Doublestar, or drop out from the bid. On April 18, he said he would not exercise his rights “for now,” calling the transaction “unjust and unfair,” blaming creditors for not allowing him to form a consortium to finance the deal. 

By Ahn Sung-mi (sahn@heraldcorp.com)