Lee Bok-hyun "Investigation Launched into Unfair Trading in Korea Zinc Tender Offer"

"We will take strict action according to law and principles"

Lee Bok-hyun, Governor of the Financial Supervisory Service. Photo by Younghan Heo younghan@

The Financial Supervisory Service (FSS) has launched an investigation into unfair trading related to the public tender offer for Korea Zinc. This decision was made based on concerns that the overheated public tender offer could unduly influence stock price formation through rumor spreading and other means.

On the 8th, according to the FSS, Chairman Lee Bok-hyun held an executive meeting and ordered strict management and supervision of the Korea Zinc public tender offer, along with the immediate commencement of an unfair trading investigation.

At the meeting, Chairman Lee pointed out rumor-spreading activities such as claims that "there are plans to acquire treasury shares at prices higher than the tender offer before disclosure" or that "the possible scale of treasury share acquisition has been exaggerated." These actions could unfairly affect stock price formation.

In response, Chairman Lee emphasized, "If any unfair trading acts aimed at obstructing the opposing party's tender offer are confirmed, strict measures will be taken against anyone involved in accordance with laws and principles."

He also stated, "Excessive price competition in the tender offer, disregarding long-term corporate value, is highly likely to ultimately damage shareholder value," adding, "We will thoroughly examine violations of the Capital Markets Act and other related regulations not only during the tender offer process but also regarding any issues arising thereafter."

Furthermore, he added, "There are high concerns about investor damage related to the Korea Zinc tender offer," and stressed, "We must actively respond, including instructing financial consumer protection measures."