Kia Chairman Resigns, Takes Fall for Crisis

Kia Group Chairman Kim Sung Hong, yielding to public and government pressure, announced his resignation, ending a three-month standoff with creditors over the fate of the near-bankrupt conglomerate. Kim’s departure may help bring an end to the financial crisis caused by Kia’s $10-billion debt, problems that have caused the South Korean stock index to tumble a third since early August. “I profoundly apologize for causing big trouble to the government, the people and Kia families,” Kim said in a statement. The benchmark stock index jumped 4.6% to 517.98 on Tuesday, due partly to anticipation that Kim’s resignation will help resolve Kia’s financial crisis. It will also help end a strike by 20,000 union members at the group’s two automotive flagships, Kia Motors Corp. and Asia Motors Co.