Minority Shareholder Platform ‘ACT’ Sparking Controversy Over Secretive Consulting Contracts in Korea Zinc and Hanmi Pharmaceutical Disputes

Minority Shareholder Platform ‘ACT’ Sparking Controversy Over Secretive Consulting Contracts in Korea Zinc and Hanmi Pharmaceutical Disputes: COMPANY / 김영택 기자 / 2026-01-22 09:12:48

Photo = ACT Homepage

[Alpha Biz= Kim Young Taek] SEOUL, South Korea — ACT (operated by Conduit), a platform claiming to represent the interests of minority shareholders, is facing intense backlash following the leak of internal documents revealing secretive consulting agreements with companies involved in high-stakes management feuds, specifically Korea Zinc and Hanmi Science (Hanmi Pharmaceutical Group).

Allegations of Profit-Seeking Amidst Corporate Battles
According to internal records leaked on January 21, ACT reportedly received significant financial compensation for providing PR and strategic advisory services to companies embroiled in control battles. This follows previous legal complaints filed in September 2025 by Young Poong and MBK Partners against Korea Zinc’s leadership and ACT CEO Sang-mok Lee.

Urgent Strategic Realignment for Premium Advisory Mandates

Defense Preparation for Korea Zinc’s Extraordinary General Meeting (EGM): Top Priority
(Young Poong to be treated as a secondary priority going forward)
– A payment of KRW 300 million is scheduled to be made to Young Poong Precision within this week.

a. Starting tomorrow, contracts will be signed with four to five collection firms, with a deposit of KRW 30 million to be paid to each.
b. A certified letter requesting access to the shareholder registry will be sent to Company K immediately tomorrow morning (see related email).
c. Our role: Collection Project Manager (PM).

Preparation for Hanmi Science’s Extraordinary General Meeting: Secondary Priority
– Contract terms finalized at a KRW 400 million retainer plus a KRW 300 million success fee, covering three EGM-related agendas.

a. Kick-off meeting scheduled for this Thursday afternoon at either 2:00 p.m. or 3:00 p.m. in Yeouido.
b. Our role: EGM Project Manager (PM).

Photo: Provided by an anonymous source

The leaked documents suggest that during the hostile takeover attempt between Korea Zinc and Young Poong, ACT actively sided with management, planning to use its influence to create "manufactured" shareholder alliances.

Key Revelations from Internal Documents
The proposal ACT submitted to Korea Zinc reportedly included a detailed plan for a 1 billion KRW (approx. $750,000) advisory fee, covering:

Targeted Attacks: Utilizing Young Poong’s low Price-to-Book Ratio (PBR) to discredit their management.

Policy Exploitation: Leveraging the South Korean government’s "Corporate Value-up Program" to stir public sentiment in favor of current management.

Orchestrated Activism: Plans to "execute strategies as if minority shareholders voluntarily formed an alliance," suggesting the public narrative was artificially constructed.

Article 4. Fees and Expenses
Down Payment: Upon the public disclosure of the convocation of the general shareholders' meeting as described in the Scope of Services (Article 2), "Party A" (Client) shall pay "Party B" (ACT) a down payment of KRW 200,000,000 (excluding VAT). This payment must be completed between the announcement of the meeting and the record date for the closure of the shareholder register.

Success Fee: If the objectives agreed upon by "Party A" and "Party B" are achieved, a success fee of up to KRW 100,000,000 (excluding VAT) shall be paid. The total success fee shall be calculated by multiplying the maximum amount by the aggregate success rate of the specific agenda items as defined below...

(Photo: Provided by an anonymous source)

Expanding Scope to Hanmi Pharmaceutical Group
The investigation also revealed that ACT was involved in the management dispute at Hanmi Science, the holding company of Hanmi Pharmaceutical Group. Experts argue that these actions treat minority shareholders as "revenue-generating tools" rather than partners in corporate governance, raising serious ethical and legal concerns regarding market transparency.

Response from ACT
ACT CEO Sang-mok Lee addressed the allegations via Alpha Biz, stating, "Regarding the timing of the consulting contract, we officially disclosed our relationship with Korea Zinc through regulatory filings related to the solicitation of voting proxies."