MBK Calls for Professional Management at Korea Zinc, Global No.1, to Employees, Clients, and Local Communities

MBK Partners (hereinafter MBK), currently conducting a tender offer for Korea Zinc, reiterated through a message to Korea Zinc employees, labor unions, customers, partners, shareholders, and local communities that there will be no workforce restructuring or overseas sale.

MBK Partners began by saying, "We sincerely apologize for not arranging a meeting to speak with you first and if the tender offer caused any surprise or concern."

MBK stated, "We believe that Korea Zinc exists today thanks to the efforts and dedication of its employees, labor union members, customers, partners, shareholders, and the local community," adding, "The pride and dignity of being the global number one in non-ferrous metal smelting fully embody the sweat and passion you have all invested over countless hours. We respect and honor you."

They continued, "Some have misrepresented that if we secure management rights of Korea Zinc, all ongoing new growth projects will be halted," and "They accuse us of focusing solely on profits and lowering product quality, and speculate that relationships with partners will be severed." Furthermore, "There are baseless rumors that core technologies will be leaked or that the company will be sold to China after acquisition, but these are unfounded and unrealistic claims," they emphasized.

MBK conveyed that the tender offer is being conducted in cooperation with Korea Zinc's largest shareholder to improve corporate governance. They explained that hostile takeovers are false claims and that the concept of a hostile takeover by the largest shareholder is impossible.

"First, the most important asset of the company is its people."

MBK said, "The dedication and efforts of the numerous employees and labor unions who have been the driving force behind the company's growth must be respected and fairly evaluated." They added, "We will do our best to ensure employment stability for Korea Zinc employees. We recognize that Korea Zinc is not only a workplace but also the foundation of life for employees and their families, and we will strive to make it a good workplace where people want to work for a long time." They particularly emphasized, "What we want to improve is to restore the corporate management system that was broken by Chairman Choi Yoon-beom, specifically to enhance corporate governance centered on the board of directors."

"A company without a future cannot achieve growth today."

MBK expressed support for Korea Zinc's future businesses, such as resource recycling, renewable energy, and electric battery materials, which form the core of the Troika Drive, built through relentless efforts. They stated, "It is absolutely undesirable to sacrifice future growth for today's profits. However, what we refuse to do is to waste the company's valuable assets simply because someone is a middle school classmate or related by marriage." They added, "Private misuse of company assets does not contribute to the company's growth in any way."

"Companies can grow through bonds and cooperation with local communities."

MBK said, "We fully understand the special significance Korea Zinc holds in Ulsan Metropolitan City," and "Just as Doosan Machine Tools, in which we invested, grew together with Gyeongsangnam-do and Changwon City, we believe Korea Zinc should grow together with Ulsan Metropolitan City." To this end, they pledged, "We will contribute to the local economy through job creation and investment." MBK stated, "The employment and investment commitments Korea Zinc has made to Ulsan Metropolitan City will continue without interruption," and "Efforts for ESG for the local community will also be strengthened."

"Korea Zinc cannot exist without numerous partners and customers."

MBK acknowledged, "We understand well that a cooperative and mutually beneficial relationship with partners is crucial for their growth and development," and "For customers, we must supply the world's best products stably, which requires continuous research and development, investment activities, and quality control." They added, "We will strive to make Korea Zinc a company that contributes to the growth of partners and customers," emphasizing, "Business cooperation with Hyundai Motor Group, LG Group, and Hanwha Group, who are collaborating in Korea's new growth industries, is very important." MBK pledged to make continuous efforts to ensure successful partnerships.

"Korea Zinc is a national key industry."

MBK stated, "As a first-generation domestic private equity fund nurtured by the Korean government, we will ensure that Korea Zinc fulfills its pivotal role in the Korean economy as a national key industry," emphasizing, "There will be no sale to China. We will invest long-term in a manner acceptable to the people of Korea and contribute to the Korean economy." MBK previously acquired Doosan Machine Tools, a national key industry in machine tool manufacturing, and grew it from sixth to third in the world before selling it to DTR Automotive, a local company in Gyeongsangnam-do.

Finally, MBK said, "We believe these efforts will lead to increased corporate value, which is also what shareholders who invested in Korea Zinc truly desire," and "Through enhancing shareholder value and returns, we will do our best to ensure that the interests of all Korea Zinc shareholders, not just specific ones, are served."

MBK explained, "Korea Zinc achieved significant growth over the past 50 years under the leadership of the two founding families, Chairman Jang Byung-hee and Chairman Choi Ki-ho, but the economic and social environment has changed, and management by the two families, now in the third generation, has become a burden for Korea Zinc, a world-leading company." They added, "Just as bamboo ties knots for greater growth, Korea Zinc must conclude the era of management by the two families for a greater leap forward and enter a professional management era based on a global corporate governance system." They concluded, "We want to take the first step toward this and earnestly request your support and encouragement so that Korea Zinc can become the world’s number one not only in business but also in corporate governance."