Palaszczuk, Former Australian Prime Minister, Supports Chairman Choi
"Renewable Energy Leadership Must Continue"
Green Party Lawmaker "Concerns Over Restructuring...
Continued Issues with Hostile M&A"
Concerns over MBK Partners' acquisition of control over Korea Zinc are being raised daily in Australian political circles. Political figures argue that if MBK's acquisition succeeds, it could negatively impact renewable energy projects and job creation in Australia. While MBK Partners claims the acquisition is aimed at improving corporate governance, worries about restructuring and the leakage of core technologies are growing.
According to our investigation on the 25th, Anastasia Palaszczuk, former Premier of Queensland, expressed her support for Choi Yoon-beom, Chairman of Korea Zinc, through her personal social media on the 22nd. Former Premier Palaszczuk said, "Chairman Choi has a partnership with the Queensland government, and much is at stake in the current issue of Korea Zinc's management acquisition," adding, "I hope his leadership in renewable energy continues."
Anastasia Palache with former Queensland Premier and Nita Green, Australian Federal Government Senator.
Korea Zinc established its zinc smelting subsidiary 'Sunmetal' in Queensland, Australia, in 1996, and in 2021 founded 'Arc Energy,' a renewable energy company producing green hydrogen through solar and wind power. Chairman Choi is said to have formed ties with former Premier Palaszczuk during her tenure.
Former Premier Palaszczuk explained that she closely cooperated with Chairman Choi, who served as CEO of Sunmetal, to invest in and grow renewable energy, and emphasized the current importance of Arc Energy in the Australian economy.
Chairman Choi served as CEO of Sunmetal from 2014 to 2018, during which time the company returned to profitability and recorded its highest-ever operating profit. The factory expansion project he led, the establishment of solar power facilities, the founding of Arc Energy, the SunHQ project, and RE100 initiatives were evaluated as having a positive impact not only on Korea Zinc but also on the Australian local community. Since then, Korea Zinc has been continuously expanding its renewable energy business in Australia.
Senator Nita Green of the Australian Federal Government also expressed support for Korea Zinc. Senator Green said, "Since its establishment in 1996, Sunmetal has created over 1,000 jobs in Townsville, Queensland," adding, "Recently, important renewable energy projects such as the SunHQ hydrogen demonstration project have been underway in the Australian region."
Senator Green warned, "If a private equity fund that does not share the vision of the Australian community acquires Korea Zinc, there are concerns about job losses due to business downsizing and restructuring," and added, "We will continue to raise issues regarding hostile mergers and acquisitions (M&A) attempts."
Earlier, local media including the Australian Financial Review reported that MBK Partners' attempt to acquire control of Korea Zinc could threaten renewable energy development, investment, and hundreds of new jobs. Additionally, Bob Katter, an Australian federal MP, criticized in local media, saying, "We cannot allow a foreign private equity fund that knows nothing about smelting to exert influence over smelters in Australia."
Lee Jejung, Vice Chairman of Korea Zinc, along with executives and employees, are shouting slogans opposing the public tender offer at a press conference regarding the management rights dispute with MBK and Young Poong held on the 24th at Korea Zinc in Jongno-gu, Seoul. Photo by Jo Yongjun
Lee Je-jung, Vice Chairman and Chief Technology Officer (CTO) of Korea Zinc, held a press conference on the 24th, stating, "If speculative forces like MBK Partners take over Korea Zinc, our core technologies will quickly be transferred overseas, and South Korea's industrial competitiveness will collapse." MBK Partners responded, saying, "Even after securing control of Korea Zinc, new growth businesses will continue, and we will do our best to ensure job security for employees," adding, "Concerns about core technology leakage are baseless rumors."
Meanwhile, Youngpoong announced that on the same day, it filed a complaint with the Seoul Central District Prosecutors' Office against Chairman Choi Yoon-beom and Vice Chairman Noh Jin-soo of Korea Zinc on charges of 'breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust in the course of business).' Youngpoong explained that it judged Korea Zinc suffered huge losses in the investment in One Asia Partners and overseas subsidiary Ignio Holdings, as well as in the interior contract process with CSD Design Group (now The Boundary), and has taken legal action accordingly.
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