South Korea's Kumho Tyre Reports Derivatives Loss of US$25.7 MLN

SEOUL, May 15 Asia Pulse - Kumho Tyre Co. (KSE:073240), South Korea's second-largest tyremaker, said Thursday it lost 27 billion won (US$25.7 million) in the first quarter of this year due to its wrong-way bets on currency derivatives.

The losses came from the "unexpected strength" of the euro currency against the South Korean won, Kumho Tyre said in a regulatory filing.

So far this year, the euro has gained 13 per cent against the won.

South Korean exporters, which bought foreign currencies in forward exchange transactions for hedging, have been suffering from the won's persistent weakness versus major currencies.

Previously, Hyundai Motor Co. (KSE:005380), the country's biggest automaker, said it lost 138 billion won in losses related to currency derivatives in the January-March period.

(Yonhap)

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