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Kim Byung-joo, Chairman of MBK Partners. (Photo: Yonhap News Agency) |
[Alpha Biz= Kim Jisun] South Korea-based private equity firm MBK Partners is ramping up its lobbying activities in the United States in connection with its ongoing control battle over Korea Zinc, as the dispute increasingly intersects with critical minerals supply chains and U.S. national security considerations.
According to industry sources on May 17, MBK has hired an additional U.S. lobbying firm, Checkmate Public Affairs, through its special purpose vehicle Korea Corporate Investment Holdings, established for the Korea Zinc acquisition. This marks MBK’s third U.S. lobbying engagement, following earlier appointments of Squire Patton Boggs in February and The McKeon Group earlier this month.
Market observers say the move reflects MBK’s effort to broaden its policy and regulatory 대응 in the United States, particularly as the Korea Zinc dispute evolves beyond a conventional corporate control battle.
The expanded lobbying push is drawing attention in connection with Korea Zinc’s planned U.S. investment project, “Project Crucible,” a proposed integrated smelting facility in Tennessee. The project is closely tied to U.S. efforts to strengthen domestic supply chains for critical minerals, elevating the dispute’s strategic significance.
The roles of the lobbying firms are also understood to focus on regulatory navigation. Squire Patton Boggs is reportedly advising on matters related to the Tennessee investment, while The McKeon Group is handling issues involving the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments for national security risks.
CFIUS oversight is particularly stringent in sectors involving critical minerals and strategic industries, underscoring the potential implications of the Korea Zinc dispute for U.S. policy and security interests.
However, some industry participants have raised concerns that MBK’s increased focus on lobbying may be overshadowing challenges within its existing portfolio companies. Recent issues include operational and employment controversies at Homeplus during its restructuring process, ongoing capital impairment at D’Live, and continued weak performance at Nepa.
Critics also point to the financial burden associated with leveraged buyout (LBO) structures, suggesting that high financing costs may have affected the management stability of certain portfolio companies.
Amid these concerns, questions are emerging within the market over whether MBK is prioritizing dispute 대응 and external strategy over the normalization of its portfolio businesses.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
