Korea Zinc to Block Sale to China... Applies to Government for 'National Core Technology' Designation

High-Nickel Processing Technology Award
Government Can 'Block' Foreign Company Sales Upon Designation
Interpreted as MBK's Overseas Resale Fundamentally Prevented

Korea Zinc has requested the government to designate its core secondary battery raw material technology as a national core technology in response to MBK Partners and Youngpoong's attempt to acquire management rights. This is interpreted as a strategy to block the possibility of selling to foreign companies even if the management rights are transferred to MBK Partners.

On the 25th, Korea Zinc announced that it submitted an application to the Ministry of Trade, Industry and Energy to designate its precursor manufacturing technology as a national core technology. The technology in question is a high-nickel precursor processing patent technology, jointly held with its subsidiary Kemco.

Lee Jejung, Vice Chairman of Korea Zinc, held a press conference on the 24th at Grand Seoul in Jongno-gu, Seoul, expressing opposition to the public tender offer arising from the management rights dispute with MBK and Youngpoong. Photo by Jo Yongjun jun21@

This move is interpreted as a strategic response to block the possibility of sale to foreign companies such as those in China, while the private equity fund MBK Partners ultimately aims to realize profits through resale. Technologies designated as national core technologies cannot be acquired by foreign companies without government approval.

MBK Partners has stated that there will be no sale to Chinese companies. On the 24th, Lee Jejung, Vice Chairman of Korea Zinc, said at a press conference, "The claim by MBK Partners that they will not sell to China is not believable," adding, "Since China produces half of the world's non-ferrous metals, it is natural that the technology will eventually be transferred to China."

A Korea Zinc official explained, "Regarding the designation of national core technology, the Ministry of Trade, Industry and Energy is expected to make a decision after completing internal reviews, including holding an expert committee and following standard procedures."