MBK Partners "Domestic Fund, Not Chinese... Efforts to Create Jobs in Local Communities"

MBK Partners, which is conducting a public tender offer for Korea Zinc together with Youngpoong, issued a statement on the 18th, emphasizing that "it is a 'domestic private equity fund' established in 2005 under the Capital Markets Act and supervised by domestic financial authorities, and it is not a China-based fund." They stressed, "The limited partners (LPs) investing in the fund are leading domestic and global pension funds and financial institutions, and it is not true that Chinese capital constitutes the majority."

They also added, "Domestic investment activities are managed by domestic investment managers, and the limited partners investing in the fund do not participate in the investments nor have access to the assets or technology of the target companies. Therefore, concerns about overseas technology leakage raised by some are unfounded."

Furthermore, they stated, "The public tender offer for Korea Zinc is intended for MBK Partners to acquire additional shares through the market together with the largest shareholder to solidify management control," and clarified, "It is unrelated to hostile actions or management rights takeover."

MBK emphasized, "We respect the efforts of the executives and employees who have led Korea Zinc’s growth and the strategic direction for new business growth," and added, "The allegations and issues raised regarding Chairman Choi Yoon-beom are separate matters from the efforts made by other members of Korea Zinc’s board, management, and employees for the company’s growth and development. Employment of staff will naturally be maintained as before, and we will continue to strive to create jobs in the local community."

They continued, "We recognize the history and tradition of Korea Zinc, which has taken root in the Ulsan region and functioned as an industrial pillar of the national economy," and stated, "After strengthening management rights over Korea Zinc, we will avoid opaque and uncertain overseas investments and will execute investments to enhance the competitiveness of Korea Zinc’s core business and profitable new business ventures. Through this, we will support Korea Zinc’s leap forward as a ‘Ulsan company’ that fulfills its social responsibilities."