Yeongpung, Chairman Choi Yunbeom of Korea Zinc and 2 Executives Accused of Breach of Trust

Allegations Raised Over OneAsia Investment and Ignio Acquisition

Youngpoong announced on the 25th that it has filed a complaint with the Seoul Central District Prosecutors' Office against Choi Yoon-beom, Chairman of Korea Zinc, and Noh Jin-soo, Vice Chairman, on charges of "violation of the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust in the course of business)."

Youngpoong explained that it decided to take legal action after determining that Korea Zinc suffered huge losses in ▲ investments in private equity funds such as One Asia Partners ▲ investment in its overseas subsidiary, Ignio Holdings ▲ and the process of signing an interior contract with CSD Design Group (now The Boundary).

Chairman Choi Yoon-beom of Korea Zinc and Advisor Jang Hyung-jin of Young Poong.
[Photo by each company]

Youngpoong stated, "Since 2019, Korea Zinc has invested approximately 604 billion KRW in eight private equity funds, including Habana No.1 and Justice No.1, managed by One Asia Partners, and the investment loss disclosed in Korea Zinc’s business report alone amounts to 36.6 billion KRW. In addition, the SM shares received as dividends in kind when Habana No.1 was liquidated incurred a loss of about 14.5 billion KRW due to a decline in stock price."

It added, "Habana No.1 has been accused of manipulating stock prices during the public tender offer of SM shares by HYBE, and since Korea Zinc holds 99.82% of Habana No.1’s shares, there is also a possibility that Korea Zinc may bear compensation liability under the Capital Markets Act for price manipulation."

Regarding Ignio Holdings, Youngpoong pointed out, "Korea Zinc acquired Ignio Holdings, which was in a state of complete capital erosion, for 580 billion KRW, purchasing Ignio shares at a higher price per share than at the time of investment in July. Acquiring a company with sales of only 2.9 billion KRW for nearly 600 billion KRW is an investment that is not logically understandable."

Regarding CSD Design Group, Youngpoong claimed that there are suspicions that it is operated by a relative of Chairman Choi and that Korea Zinc unfairly allocated work to the company, stating, "There is a high possibility that this constitutes unfair trade practices."