Korea Zinc Denies Funds Flow to Chairman Choi-Linked Firms
Suspicions have been raised that the investment funds from a private equity fund invested by Korea Zinc flowed through a Kakao affiliate to a company in which Chairman Choi Yun-beom had previously invested.Young Poong and MBK Partners claimed that the two investment transactions were a pre-linked ‘p
BusinessKorea has reported suspicions that investment funds from Korea Zinc may have flowed through a Kakao affiliate to a company in which Chairman Choi Yun-beom had previously invested. The private equity fund, which invested through Korea Zinc, is claimed to have been a pre-linked 'package deal.' Young Poong and MBK Partners, the private equity fund, argued that the transactions were structured in a way that allowed a portion of Korea Zinc's investment to flow into Arc Media through Kakao Entertainment.
They also raised concerns over Chairman Choi's investment in convertible bonds of Story Hunter in 2019, suggesting that the value of his personal investment assets was inflated using fund money. In response, Korea Zinc denied these allegations, stating that they are a distortion that arbitrarily connects separate transactions and that the general partner leads the specific selection, due diligence, and execution of investment targets.
They emphasized that the evaluated equity value and the actual realized profit are strictly different concepts.
Brief written by urgent.news from BusinessKorea's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
