At the National Audit, Controversy Over Friendly Questions; Korea Zinc Denies Allegations as "Baseless"

Korea Zinc has been accused of asking members of the National Assembly to make favorable inquiries during the national audit. Korea Zinc responded that they were unaware of the situation but expressed regret.

On the 17th, at the Korea National Oil Corporation in Jung-gu, Ulsan, during the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee's audit of 12 institutions including the Korea National Oil Corporation, Kim Han-gyu of the Democratic Party of Korea is questioning.
[Image source=Yonhap News]

On the 24th, during the comprehensive audit of the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee, Assemblyman Kim asked Park Ki-deok, president of Korea Zinc, "Korea Zinc contacted me asking for favorable inquiries," and questioned, "Why ask a member of the National Assembly to make favorable inquiries?"

President Park replied, "I was not aware of such a situation," and added, "We are also very sorry that this incident occurred."

Korea Zinc stated, "We have never asked for favorable questions," denying the allegations as groundless.

Assemblyman Kim also expressed skepticism about the timing of Korea Zinc’s push for national core technology designation. He pointed out, "Korea Zinc says it is applying to designate the technology it holds as core technology, but why did they not apply earlier and only do so now?" He added, "Usually, core technologies are applied for regardless of mergers and acquisitions if they are important." He further said, "Ultimately, this is a fight between the Choi and Jang families," and "The core issue is which of the two chaebols will hold management rights."

President Park responded, "It is to defend the management rights held by our company’s board of directors."

Korea Zinc is currently in a management rights dispute with the Yeongpung-MBK Partners alliance. After the Yeongpung-MBK Partners alliance announced a public tender offer plan, Korea Zinc applied to the Ministry of Trade, Industry and Energy for the designation of the 'high-nickel precursor processing patent technology' as a national core technology.