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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] A legal battle over management control of Korea Zinc is intensifying, as the court ordered the disclosure of key contract documents related to a partnership between Young Poong and MBK Partners.
Following the ruling, Korea Zinc Chairman Choi Yun-beom’s side has escalated its offensive, pledging to uncover alleged breaches of fiduciary duty, while Young Poong strongly opposed the decision, citing concerns over exposure of management strategy.
According to legal sources and Korea Zinc affiliate KZ Precision on May 5, the Seoul High Court’s Civil Division 25-2 dismissed an immediate appeal filed by Chang Hyung-jin, advisor to Young Poong, against an order requiring submission of management cooperation agreement documents.
The appellate court upheld an earlier district court decision from December, reaffirming that all contract documents between MBK and Young Poong must be disclosed.
The documents reportedly include detailed terms such as a call option allowing MBK to acquire a portion of Young Poong’s stake in Korea Zinc.
Korea Zinc’s side has filed a shareholder derivative lawsuit worth approximately KRW 930 billion, alleging that Young Poong agreed to transfer shares to MBK at below-market prices, thereby harming the company and its shareholders.
A KZ Precision official said the court acknowledged that the extent of potential damages could vary depending on contract details and reaffirmed shareholders’ rights to oversight. “We will thoroughly examine the terms under which Korea Zinc shares may be transferred to MBK and whether shareholder interests were compromised,” the official said.
Young Poong, however, pushed back, pointing to a separate lawsuit in which a request for document submission had been rejected. The company argued that key aspects of the management cooperation agreement have already been sufficiently disclosed through regulatory filings.
It also warned that complying with the order could expose core business strategies and trade secrets, vowing to take all legal measures to prevent such outcomes.
In response, KZ Precision stated that the previously rejected documents pertain to follow-up agreements between affiliates and are unrelated to the management cooperation agreement now subject to disclosure.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
