Youngpoong, MBK Demand Director Choi's Retreat from Korea Zinc Management
Marking two years since the initiation of a public tender offer for Korea Zinc, Youngpoong and MBK Partners demanded the resignation of Korea Zinc Director Choi Yun-beom from front-line management. They argued that the responsibility of the management must be investigated, raising issues with invest
Two years after the launch of a public tender offer for Korea Zinc, investment firms Youngpoong and MBK have called for Korea Zinc Director Choi Yun-beom to step down from his front-line management position. The demand follows a series of concerns regarding the management's handling of investments in unlisted entertainment companies, the acquisition of Igneo Holdings, and the company's rising borrowings.
Youngpoong and MBK argue that 69 billion won (around $50.5 million) invested through the One Asia Partners fund, financed by Korea Zinc, into entertainment firms like Arc Media, Hi-Hat, and Slingshot, where Director Choi's family held personal stakes, have resulted in capital impairment for Hi-Hat and Slingshot. They also claim that Arc Media faces significant risk due to its investment.
The investment firms have criticized the Securities and Futures Commission for imposing heavy disciplinary actions due to the lack of disclosures on transactions with related parties and violations of accounting standards. They have pointed out that the situation constitutes a breach of trust transaction, where personal interests of an individual family were promoted at the expense of Korea Zinc and its general shareholders.
Youngpoong and MBK also questioned the investment decision-making process and board supervision during the acquisition of Igneo Holdings and Korea Zinc's increasing borrowings. They noted that Korea Zinc had invested about 580 billion won ($446.15 million) in the American electronic waste company between 2023 and 2024, while borrowings rose from 387.6 billion won to 3.9966 trillion won over the same period. Annual interest expenses also increased from 25.6 billion won to 153.1 billion won.
Additionally, the firms raised concerns about Korea Zinc's 2.5 trillion won capital increase that was pushed forward and subsequently withdrawn in 2024, as well as circular shareholding through the overseas affiliate SMC. The investment firms emphasized that holding Director Choi Yun-beom accountable and excluding him from front-line management is essential for normalizing Korea Zinc's management and financial structure.
They emphasize the need to rebuild an independent and responsible board of directors to restore legitimate rights to shareholders.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
