South Korea's Kumho Tire Co. (KSE:073240) has passed safety standards set by the U.S. Federal Aviation Administration (FAA), opening the door for greater production and export, industry and government sources said Sunday.

The FAA's approval is testimony to the quality of tires produced by Kumho. The company and the Ministry of Construction and Transportation have been working since March 2005 to design, produce and receive international approval for tires used on passenger jets.

The lack of international confirmation on quality has made it hard for the Gwangju-based company to export tires for civilian aircraft. Up until now, only tires used on military aircraft have been produced for sale.

"This handicap meant jets belonging to our affiliate, Asiana Airlines had to use imported tires," said a company spokesman. He said the latest FAA action allows the mass production of airplane tires for both the domestic and foreign markets.

"It can mean great gains in terms of production, sales and profits for the company," the spokesman added.

The FAA's seal of approval is also a boost for efforts being taken by Seoul to sign a Bilateral Air Safety Agreement (BASA) with the United States. The transportation ministry along with the Ministry of Industry, Commerce and Energy has designated Kumho as a pilot project to highlight the level of quality that local companies can reach in the manufacturing of aircraft parts. A BASA is needed if South Korean companies want to produce parts that can be used on civilian airplanes that fly into the United States.

As of 2004 the United States has signed BASA pacts and similar Bilateral Airworthiness Agreements with 30 countries worldwide including Japan, Singapore, Germany, France and Great Britain.