MBK Partners Teams Up with Young Poong to Become Largest Shareholder of Korea Zinc

Private equity firm MBK Partners will become the largest shareholder of Korea Zinc together with Young Poong.

Chairman Byungjoo Kim of MBK Partners. [Photo by MBK Partners]

On the 12th, MBK Partners announced, "Through a shareholder agreement with Young Poong, the largest shareholder of Korea Zinc, and related parties (the Jang family), we have agreed to become the largest shareholder of Korea Zinc and jointly exercise voting rights led by MBK Partners," adding, "We have also been granted a call option on some of the shares owned by Young Poong and related parties."

Through this agreement, MBK Partners will jointly exercise voting rights with Young Poong and related parties.

MBK Partners has been granted a call option (right to demand sale) on some of the shares owned by Young Poong and related parties. This will allow MBK Partners to hold one more share than the shares held by Young Poong and related parties.

Jang Hyung-jin, advisor to Young Poong, said, "I believe it is appropriate to conclude the era of joint management by the two families that has continued for 75 years and into the second generation," adding, "It is neither possible nor appropriate for the third generation to jointly manage the company when the shares have been fragmented and inherited."

He further stated, "I believe that transferring the position to corporate management and global investment experts like MBK Partners, who can improve corporate governance and further strengthen Korea Zinc’s global status as the leading non-ferrous metal smelting company, is the role of the founding family and responsible major shareholders."

Korea Zinc, a core affiliate of the Young Poong Group, was founded by the late founders Jang Byung-hee and Choi Ki-ho. Currently, the Choi family manages Korea Zinc, while the Jang family manages Young Poong Group and its electronics affiliates.

Since the appointment of Choi Yoon-beom as chairman of Korea Zinc in 2022, a competition to acquire shares of Korea Zinc between the Choi family and Jang Hyung-jin’s Young Poong Group family has led to a conflict over management rights between the two companies.