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Photo courtesy of Korea Zinc |
[Alpha Biz= Kim Jisun] Korea Zinc has strongly rejected allegations raised by Young Poong and MBK Partners regarding its investment in One Asia Partners, accusing the parties of distorting facts and undermining corporate value.
In a statement released on May 18, Korea Zinc said Young Poong and MBK have continued a hostile M&A attempt to gain control of its board over the past three years, relying on “speculation and pieced-together claims” to wage a smear campaign.
The company argued that as their takeover efforts faced mounting challenges—including controversies surrounding environmental issues and portfolio companies—MBK expanded lobbying efforts in the United States while Young Poong intensified public criticism against Korea Zinc.
Korea Zinc firmly defended its investment decisions, stating that all transactions related to One Asia Partners were conducted in full compliance with applicable laws and internal procedures. It added that allocating a portion of corporate funds into bonds and investment vehicles is a common strategy for portfolio diversification and asset management.
The company warned that continued allegations could damage not only its corporate value but also the competitiveness of critical national industries, emphasizing its role as a key player in the global supply chain for essential minerals and in Korea-U.S. economic and security cooperation.
Korea Zinc also reaffirmed its commitment to “Project Crucible,” a U.S.-based smelting project, highlighting it as a strategic initiative tied to bilateral economic collaboration.
The dispute stems from claims by Young Poong and MBK that questioned Korea Zinc’s past investment in private bonds issued by Cheongho Comnet and its funding relationship with One Asia Partners. They have called for greater transparency regarding decision-making processes and the involvement of senior management.
Korea Zinc dismissed the claims as misleading and reiterated that it will continue to focus on business operations, stating that it remains on track to deliver record performance despite ongoing external pressures.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
