Strategy

As the market evolves with the expansion of electric vehicles and the application of autonomous driving technology, the safety and technical standards required for tire products are also continuously changing. In response, Kumho Tire aims to secure a competitive edge in quality that aligns with growth and market changes, ensuring responsibility for products. Kumho Tire categorizes processes into development quality (PLM)*, mass production quality (QMS)**, and market quality (VOC)***, establishing a mid to long-term roadmap and applying quality management strategies across the entire product life cycle from production to sales. In 2023, Kumho Tire established a design and manufacturing quality management system for EV tires to ensure stable quality, and expanded the supply of EV tires to global car makers (HKMC, BYD, etc.), actively responding to future market changes. Additionally, we will secure quality competitiveness to ensure consistent quality for the same products, thereby solidifying customer trust.


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Target

Kumho Tire prioritizes customer safety and satisfaction by setting and managing targets for the Customer Satisfaction Index and VOC resolution time reduction index. Customer satisfaction (out of 5 points) with product performance and service is confirmed through Happy Calls. We manage the VOC resolution time reduction index to quickly address major risks impacting consumer rights.


Unit
2023 Goal2023 Performance2024 Goal

Customer Satisfaction

Index4.87
4.91
4.87

VOC Resolution Time Reduction

Index37.25
37.41
39.54
Assessment

Quality Management System Certification

Kumho Tire has established a system based on IATF 16949: 2016, the quality management system standard for the automotive industry, and ISO 9001 certifications to dedicate itself to quality management activities.


IATF 16949: 2016 Certification Status

CountryRegion

Certification Date

Expiry Date
DomesticGwangju2023. 11.2026. 11.
Gokseong
2023. 11.
2026. 11.
Pyeongtaek
2023. 11.
2026. 11.
OverseasChinaNanjing
2024. 03.
2027. 02.
Changchun
2021. 08.
2024. 08.
Tianjin
2024. 02.
2027. 02.

United States

Georgia
2023. 11.
2026. 11.
VietnamBinh Duong
2024. 01.
2027. 01.


ISO 9001:2015 Certification Status

Country
Region
Certification DateExpiry Date
Domestic
Gwangju
2023. 11.
2026. 11.
Gokseong
2023. 11.
2026. 11.
Pyeongtaek
2023. 11.2026. 11.
Overseas
China
Nanjing
2024. 03.
2027. 02.
Changchun
2024. 02.
2027. 02.
Tianjin
2021. 08.
2024. 08.
United States
Georgia
2023. 11.
2026. 11.
Vietnam
Binh Duong2024. 01.
2027. 01.


Performance

Quality Management System Administration

Global Quality System Management

To meet the requirements of car makers and ensure Global One Quality, we are diagnosing the quality management systems of our global plants and suppliers. Additionally, we are conducting diagnoses in line with IATF 16949: 2016 Quality Management Systems to maintain and advance our quality management system. To maintain high customer satisfaction and strengthen reliability with all stakeholders, in 2023, Kumho Tire completed diagnoses of the quality management systems of eight plants in Korea, China, Vietnam, and the United States, as well as across all domestic and international sites. In 2023, Kumho Tire expanded the number of suppliers subject to quality management diagnostics from 91 to 141 and conducted thorough quality assessments. Through these diagnostics, we aim to ensure uniform quality, and manage and improve quality-related risks.

IndicatorRegionSchedule

Global Plants Quality Management

Eight plants in Korea, China, etc.

‘23. 7 - 08.

Quality Management System

All Domestic and International Sites

‘23. 1 - 12.

Supplier Quality Management

141 companies (33 domestic, 108 overseas)


‘23. 4 - 12.


Design Quality Verification (Quality Consensus) System

Kumho Tire operates a quality consensus system for developing and improving products to ensure consumer safety. This system guarantees the quality of products developed and improved by conducting various additional verifications beyond those agreed upon with the R&D Center to enhance product safety.

IndicatorUnit202120222023

Number of verified products in development stage

Cases 290177209

Ratio of evaluated products

%100100100


Quality Uniformity Monitoring

Kumho Tire operates a Quality Monitoring System (QMS) to preemptively block factors that may cause quality issues. Using the QMS, Kumho Tire automatically aggregates information on core process quality and key influencing factors, analyzing and managing process capabilities in real time. The system visualizes the monitoring results of over 200 control items, making it easy to identify process issues and improve quality and productivity. Furthermore, during the development and mass production stages of our products, Kumho Tire applies stringent standards to various quality tests, including regulatory durability tests, rolling resistance, wet grip, acceleration noise, and driving stability, to ensure safety and enhance customer satisfaction.

Quality Risk Management Process

Kumho Tire has established a quality risk management process to prepare for safety incidents related to products and services. In the event of a quality-related incident, domestic and international representatives promptly visit the site to analyze the cause and  take appropriate actions. If the cause is difficult to determine onsite, the product is transferred to our quality analysis lab for further investigation and action. Additionally, through the NP-3Y (New Product-3 Years) policy, we intensely monitor the market quality of new products to ensure their quality.


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Operation of Quality Councils and Meetings

A team-level quality council is held monthly, and a quality meeting led by the management is held every two months. In the quality council, members from research, plants, and sales departments identify improvement tasks concerning VOC, field, and process issue resolution, and preventive quality assurance. The quality meetings manage the implementation of improvement tasks to ensure product reliability.


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Strengthening of Quality Management Capabilities

Kumho Tire has established a Quality Training System for job levels, implementing quality management education and common job training, with regular training for domestic representatives. In 2023, we provided more training than the previous year, focusing on process, quality systems, and certification to enhance quality management capabilities.

Recall System

Kumho Tire implements a recall system, including the collection of defective products, to prevent harm on customers. We monitor product quality and analyze customer claims to identify product defects and risks. Based on the collected information, Kumho Tire conducts product quality verification evaluations to decide whether to implement a recall, setting retrieval and compensation standards according to national regulations. Kumho Tire informs consumers about the recall implementation, takes necessary process actions to prevent recurrence of the same issue, and conducts follow-up management.


Strengthening Customer Communication

Comprehensive VOC Management System

Kumho Tire has established a comprehensive VOC (Voice of the Customer) management system to swiftly gather and address customer needs and feedback. When VOCs are received, they are registered in the system, monitored for progress, and relayed to relevant departments to ensure prompt follow-up actions. Additionally, thorough analyses are conducted on resolved cases to prevent recurrence of complaints. After receiving and addressing complaints, customer satisfaction is evaluated through surveys, with an annual target of achieving over 4.8 points in customer satisfaction. Furthermore, we have set a target for the ‘VOC Resolution Time Reduction Index’ to swiftly respond to customer demands and promptly address issues.


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Online Customer Communication Channels

To promptly deliver accurate information to customers worldwide, we operate 21 websites across 18 countries and have established official social media channels such as Facebook, Instagram, and YouTube. Our official YouTube channel, ‘ECSTA TV,’ was the first in the industry to receive the Silver Button (100,000 subscribers) and has approximately 180,000 subscribers as of the first half of 2024. Kumho Tire has also produced Instagram toons featuring its official characters ‘Thoro & Roro’ and, following the launch of new electric vehicle brand EnnoV, developed the ‘(Bae)Thory’ character inspired by batteries to create a more approachable brand.


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Improving Customer Service

In 2023, Kumho Tire implemented a free tire insurance service and refund guarantee policy for German customers. We offer free replacement services for tire damage caused by sharp objects or curbs within six months. For domestic customers, Kumho Tire provides a ‘Premium Warranty’ for premium tires, offering one-time compensation for complaints that may arise due to customer fault. Kumho Tire will continue to expand various customer satisfaction policies to enhance customer service.

Customer Safety Inspection Campaigns

Kumho Tire continuously conducts customer safety inspection campaigns to ensure that end-users enjoy safe and pleasant driving experiences. In collaboration with experts, service vehicles directly visited public offices and corporations to inspect tire pressure and appearance. During the summer vacation season, Kumho Tire distributed tire inspection and safety guides through a highway safety campaign to encourage safe tire usage. Europe Division launched a traffic safety campaign with the Nienburg police in Germany. The campaign aimed to enhance road safety for local children, youth, and the elderly, focusing on improving road traffic safety awareness through tailored education programs at local kindergartens, schools, and other educational institutions.

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