QINGDAO - An equity investment fund from the eastern Chinese city of Qingdao has agreed to buy 42.01 percent of Kumho Tire of the Republic of Korea.

In a statement filed to the Shenzhen Stock Exchange Tuesday, Qingdao Doublestar said a subsidiary of Qingdao Xingwei Equity Investment Fund signed a deal Monday with Korea Development Bank to pay 955 billion South Korea won ($830 million) for about 66.37 million shares the bank and others hold.

In December 2016, Qingdao Doublestar invested 900 million yuan ($130 million) to set up Qingdao Xingwei Equity Investment Fund with several other local investment firms.

After the deal, Xingwei Equity Investment Fund will become Kumho Tire's biggest shareholder.

Founded in 1960, Kumho Tire is the second-largest tire maker in the Republic of Korea.

Shares of Qingdao Doublestar, whose business includes tires, mechanics, real estate and sports, fell 2.84 percent to 8.55 yuan as of 2:30 pm Tuesday.