MBK Partners-YoungPoong
Updated News - 딜메이커 지창배
Previously Shared Materials
Past Shareholders' Meetings
'25 January - EGM
During the January 2025 extraordinary meeting, MBKP and Young Poong confronted Korea Zinc management’s attempts to entrench control through controversial tactics – including a cross-shareholding maneuver to strip Young Poong’s 25% stake of voting rights. The MBKP/YP Consortium condemned the meeting as invalid and pursued legal action, winning a court decision to suspend the EGM’s outcomes.
'25 March - AGM
At the March 2025 AGM, MBK and Young Poong pressed for stronger oversight and an independent board to improve Korea Zinc’s governance. Their campaign won support from major proxy advisors and global investors – including a vote of confidence from Norges Bank Investment Management, Norway’s sovereign fund – underscoring broad shareholder demand for accountability, while Chairman Choi held on to his management control at the meeting.
Destruction of Shareholder Value
Need for Corporate Governance Reform
Korea Zinc under Chairman Choi has been labeled “the epitome of bad corporate governance” by its largest shareholder, the MBKP/YP Consortium. The Consortium points to entrenched insider control, lack of independent oversight,and self-serving decisions as evidence that the current governance structure fails to protect shareholder value. It advocates comprehensive reform – including a truly independent board and stronger shareholder rights – to modernize Korea Zinc and ensure that the interests of all shareholders are fairly represented.
Relationship with Activist Platform, "ACT"
Media reports revealed that the supposedly "independent" minority shareholder platform called ACT was secretly funded by Korea Zinc’s management and used to manipulate public opinion. According to the media, internal documents revealed that ACT orchestrated sham activist campaigns at unrelated major firms – even proposing cumulative voting at companies like Emart and Samsung Electronics – solely to legitimize Chairman Choi’s own agenda against the MBKP/YP Consortium. This coordinated deception undermined genuine shareholder activism and exemplifies how far the current leadership will go to cling to management control.
Disposal of Hanwha Shares
The MBKP/YP Consortium sued Korea Zinc’s chairman for selling a large block of Hanwha Corp. shares at a giveaway price without board approval, allegedly causing massive losses to the company.
Chairman Choi offloaded Korea Zinc’s entire 7.25% stake in Hanwha at below cost – reportedly as a favor to an ally – forfeiting over W100 billion in potential gains that should have benefited shareholders. By taking legal actions, the MBKP/YP Consortium aims to hold management accountable and recover value for shareholders, sending a clear message against such unilateral, value-destructive decisions.
Disposal of Jeongseok Enterprise Shares
Korea Zinc’s leadership orchestrated the purchase and subsequent low-price sale of shares in Jeongseok Enterprise (a Hanjin Group affiliate) under suspicious circumstances.
The MBKP/YP Consortium suspects this was a pre-arranged “parking” transaction – with Korea Zinc acting as a temporary holder of Hanjin’s stake – benefiting the chairman’s allies rather than Korea Zinc’s own shareholders. This questionable deal further exemplifies the governance failures under Chairman Choi and reinforces the MBKP/YP Consortium’s push for transparency and accountability.
Disposal of Jeongseok Enterprise Shares
Korea Zinc’s leadership orchestrated the purchase and subsequent low-price sale of shares in Jeongseok Enterprise (a Hanjin Group affiliate) under suspicious circumstances.
The MBKP/YP Consortium suspects this was a pre-arranged “parking” transaction – with Korea Zinc acting as a temporary holder of Hanjin’s stake – benefiting the chairman’s allies rather than Korea Zinc’s own shareholders. This questionable deal further exemplifies the governance failures under Chairman Choi and reinforces the MBKP/YP Consortium’s push for transparency and accountability.
Questionable Investments
Legal Proceedings Over the Acquisition of Igneo Holdings
Korea Zinc’s 2022 acquisition of Igneo Holdings – a recycling business – has come under scrutiny after revelations that the sellers reaped an astonishing 100-fold return. The MBKP/YP Consortium raised concerns over Chairman Choi orchestrating this overpriced deal to benefit connected parties at the expense of Korea Zinc shareholders. The MBKP/YP Consortium initiated legal proceedings and even secured key witness testimony in the US to expose potential misconduct, reinforcing the need for improved oversight and transparency.
OneAsia Partners
The MBKP/YP Consortium has raised concerns over Korea Zinc’s entanglement with OneAsia Partners – a firm implicated in the SM Entertainment stock manipulation scandal – as a serious red flag.
Korea Zinc’s funds were allegedly used as a “cash pipeline” for the scheme, with Chairman Choi’s management effectively complicit in unlawful market manipulation. Recently, the court rulings confirmed that OneAsia Partners and Korea Zinc's management had a "special relationship," validating concerns raised by the MBKP/YP Consortium.
TMC Investment
Korea Zinc’s management poured $85 million into The Metals Company (TMC) – a speculative deep-sea mining venture – despite Korea Zinc’s lack of mining expertise. The outcome has been alarming: TMC’s stock price has been volatile and the project faces legal and regulatory hurdles, including scrutiny by international authorities over potential violations of deep-sea mining rules. The MBKP/YP Consortium highlights this as a prime example of Chairman Choi’s reckless investments at the expense of shareholder value.
Alleged Capital Markets Act Violations over Concealment of Capital Increase Plan
Initial Raid of Korea Zinc Headquarters by Prosecutors
In April 2025, prosecutors raided Korea Zinc’s offices – also targeting securities firms involved – as part of an investigation into the company’s controversial new share issuance plan.
This followed the MBKP/YP’ Consortium's successful efforts to block a massive $1.8 billion share issue that Chairman Choi had attempted – a move regulators and the market saw as unfair and harmful to shareholders. The criminal probe into this aborted deal underscores the validity of the MBKP/YP Consortium's concerns and its role in safeguarding shareholder interests.
Second Raid of Korea Zinc Headquarters by Prosecutors
In November 2025, prosecutors carried out a second raid on Korea Zinc – also targeting additional securities firms involved – as the investigation into last year’s controversial share issuance continues. Authorities suspect that Korea Zinc’s management engaged in fraudulent unfair trading by secretly planning a W2.5 trillion share issue immediately after a massive share buyback, a scheme regulators have condemned and referred for prosecution.
