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[Alpha Biz= Paul Lee] Young Poong Group and Korea Corporate Investment Holdings urge the Korea Zinc Board to delay Ki-Deok Park’s appointment and address market concerns surrounding alleged Capital Markets Act violations.
Seoul, South Korea – May 9, 2025 — Korea Zinc’s largest shareholders, Young Poong Group (via its affiliate YPC) and MBK Partners (via Korea Corporate Investment Holdings), have issued a formal statement opposing the appointment of Mr. Ki-Deok Park as Representative Director, citing his involvement in an ongoing criminal investigation related to alleged violations of the Capital Markets Act.
Mr. Park, along with senior executives Yun-Beom Choi and Seung-Ho Lee, is under investigation for unfair trading practices related to Korea Zinc’s KRW 2.5 trillion capital increase announced on October 30, 2024. The prosecution named Mr. Park as a suspect during a search and seizure of Korea Zinc’s headquarters on April 23, 2025.
"The reappointment of an executive under criminal investigation for actions that directly harmed shareholders is inconsistent with the Board’s duty to protect shareholder value and uphold corporate governance standards," the shareholders stated. "Such a decision raises serious concerns about oversight and accountability at the highest levels of the company."
In addition to calling for the suspension of Mr. Park’s appointment, the shareholders demand that the Korea Zinc Board of Directors obtain and publicly disclose a formal report on the alleged violations, which they argue contributed to a steep decline in the company’s stock price and investor trust.
The controversial capital increase plan involved purchasing treasury shares at KRW 890,000 while issuing new shares at a significantly lower price of KRW 670,000. According to the shareholders, the company also failed to disclose this planned change in financial structure during its tender offer—a potential breach of fair disclosure regulations.
"The Board must act decisively by exercising its authority under the Commercial Act to investigate, report, and communicate openly with shareholders," the statement emphasized. "Transparency is essential to restoring confidence and ensuring the company’s long-term stability."
The shareholders urge the Korea Zinc Board to fulfill its fiduciary responsibilities by suspending Mr. Park’s appointment and disclosing its findings and position on the matter in a timely and transparent manner.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
