Park Ki-deok, CEO of Korea Zinc, "Thorough Investigation into MBK and Youngpoong Stock Price Manipulation Allegations"

"Filing Injunction Despite Knowing Dismissal... Market Confusion"
"Investors Suffer Over 5% Loss Due to Market Instability"

Park Ki-deok, CEO of Korea Zinc, claimed that the injunction request to prohibit the company’s stock repurchase filed by MBK Partners and Youngpoong "raises suspicions of market disorderly conduct such as stock price manipulation and fraudulent unfair trading." By highlighting that MBK’s two injunction requests were intended to obstruct Korea Zinc’s public stock repurchase, it is interpreted as a call for active cooperation in the public stock repurchase, which has a deadline on the 23rd.

On the 22nd, Park held a press conference at the Koreana Hotel in Jung-gu, Seoul, stating, "If illegal activities are proven, their public stock repurchase will have serious legal defects." This was his second official appearance since earlier this month alongside Choi Yoon-beom, chairman of Korea Zinc.

At the event, Park strongly criticized MBK for filing two injunctions to prohibit the stock repurchase, saying, "They are disrupting the market and deliberately misleading investors." He pointed out, "Youngpoong and MBK spread unfounded claims that will be clearly clarified through the trial, causing market confusion."

On the 22nd, Park Ki-deok, CEO of Korea Zinc, held a press conference at the Koreana Hotel in Seoul to express his position on the management rights dispute, including the dismissal of the injunction request to suspend the tender offer process for Korea Zinc's treasury shares filed by Youngpoong and MBK Partners. Photo by Heo Young-han

Earlier, as soon as MBK began the public stock repurchase of Korea Zinc for the purpose of acquiring management rights, they filed an injunction to prohibit Korea Zinc’s stock acquisition, blocking the company’s countermeasures. After the first injunction was dismissed and Korea Zinc proceeded with the public stock repurchase, MBK immediately filed a second injunction, which was also dismissed.

Park said, "As if anticipating the dismissal, just two hours after the first injunction dismissal decision, even before the company’s board resolution on treasury stock acquisition was disclosed, they filed the second injunction raising the same issues as the first." He added, "They spread unfounded claims that the company’s public stock repurchase is illegal and could be nullified by the second injunction, causing market instability."

Youngpoong and MBK claimed that Korea Zinc’s public stock repurchase violated the Capital Markets Act and the Commercial Act, but the court rejected this on the 21st. Korea Zinc argued that the injunction requests were intended to create uncertainty among shareholders and induce them to respond to Youngpoong and MBK’s public stock repurchase.

Park warned, "Although Youngpoong and MBK’s public stock repurchase price was 60,000 won lower than the price proposed by Korea Zinc, some shareholders felt uneasy and suffered losses." He added, "This is a clear case of market manipulation and disruption of the capital market, and they will not be able to avoid legal punishment."

He also raised doubts about MBK’s management capabilities. Park said, "MBK, Youngpoong, and Advisor Jang Hyung-jin have never managed Korea Zinc." He continued, "Since they have never conducted due diligence on Korea Zinc, they cannot properly understand or grasp the company’s business and value." He criticized, "While claiming to fully inherit the Troika strategy promoted by Korea Zinc’s current management, Youngpoong is simultaneously pursuing a lawsuit to invalidate new share issuance against Hyundai Motor Group."

Park further stated, "Instead of pointing out Korea Zinc’s governance, they should prove that they are enhancing Youngpoong’s corporate value and improving governance according to their own logic."

Following the dismissal of the injunction, Korea Zinc plans to complete the scheduled public stock repurchase without any setbacks as legal risks have been resolved. As of 10:20 a.m. on the day, the company’s stock price showed a slight decline to 862,000 won compared to the previous day. Once Korea Zinc’s public stock repurchase concludes, the management rights dispute with the Youngpoong-MBK alliance is expected to proceed to an extraordinary shareholders’ meeting to form the board of directors.