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…
The Korea Times reports that a Seoul Central District Court has dismissed a shareholder derivative lawsuit filed by Young Poong Corp. against Korea Zinc Co. Chairman Choi Yun-beom and other directors. Young Poong, a major shareholder in Korea Zinc, had sought 837 billion won in damages, alleging that the directors had inflicted significant losses on the company through a tender offer for its own shares at 890,000 won each, when the actual market price was closer to 560,000 won.
Despite presenting a strong case, the court ruled that Korea Zinc's directors did not violate their managerial duties, as they had taken appropriate steps before the purchase. Additionally, the court found that the actions in question did not contravene the Commercial Act or the company's articles of incorporation, resulting in a significant setback for Young Poong's legal claim.
Brief written by urgent.news from The Korea Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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