Young Poong loses shareholder derivative suit against Korea Zinc
A court on Thursday ruled against Young Poong Corp. in a shareholder derivative lawsuit seeking 837 billion won ($631 million) in damages from Korea Zinc Co. Chairman Choi Yun-beom and other company directors. Young Poong — a major shareholder in Korea Zinc — had filed the suit in November 2024, claiming Korea Zinc's directors had inflicted losses of 837 billion won on the company by making a…
Seoul's Central District Court has dismissed a shareholder derivative lawsuit filed by Young Poong Corp. against Korea Zinc Co. Chairman Choi Yun-beom and other company directors, ruling that they did not violate their managerial duties. Young Poong, a major shareholder in Korea Zinc, had sued for 837 billion won in damages, claiming that the tender offer to buy shares at 890,000 won each, when the actual price was around 560,000 won, caused substantial losses to the company.
However, the court stated that the directors' actions were not in violation of the Commercial Act or the company's articles of incorporation, emphasizing their adherence to procedural compliance and managerial discretion. Young Poong and its private equity partner MBK Partners Ltd. have vowed to appeal the ruling, citing the significant erosion of shareholder value caused by the tender offer.
The dispute over control of Korea Zinc lasted six months in 2024-2025, with Young Poong and MBK ultimately thwarting a takeover attempt by Choi and his associates.
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