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Yoonbeom Choi, Chairman of Korea Zinc. (photo= Korea Zinc) |
[Alpha Biz= Reporter Kim Jisun] On September 21, MBK Partners issued a statement accusing Choi Yoon-beom, the chairman of Korea Zinc, of undermining the company's board of directors and severely damaging its decision-making functions.
MBK Partners argued that if the board had been functioning properly, certain questionable financial decisions, such as a ₩560 billion investment in One Asia Partners, the use of investments for market manipulation in SM Entertainment, and the acquisition of Ignio Holdings, a financially troubled electronic waste recycling company, would not have occurred.
According to MBK, Choi made unilateral decisions, such as investing ₩560 billion of Korea Zinc's funds into One Asia Partners without board approval. This amount is about 1.4 times Korea Zinc's annual payroll expenses. MBK Partners further claims that One Asia Partners, established just three months after Choi became CEO in 2019, had a significant portion of its capital, over 80-90%, funded by Korea Zinc. The losses from this investment are estimated at ₩137.8 billion (-24.8%) as of June 2024.
Additionally, MBK raised concerns over a ₩100 billion investment in Havana No. 1 Fund, which was allegedly used for price manipulation in SM Entertainment stock. Choi has been under criminal investigation for violations of the Capital Markets Act, as well as for embezzlement and breach of trust.
MBK also pointed out that a professor from Korea University, who previously served as an outside director at Cheongho Comnet, a company operated by One Asia Partners' CEO, serves on Korea Zinc's board, suggesting that proper checks and balances over Choi's decisions are lacking.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
