The Financial Supervisory Service (FSS) has reported the rights issue, which was carried out abruptly during the management dispute at Korea Zinc, as an unfair trade and referred the case to the prosecution.
According to the financial investment industry on the 7th, the FSS referred Korea Zinc's management and others to the prosecution for violation of the Capital Markets Act through a fast track (expedited investigation transfer).
The Korea Zinc board of directors resolved a rights issue worth 2.5 trillion won on October 30 last year. Prior to that, Korea Zinc conducted a tender offer from October 4 to 23 of the same year.
The FSS judged that Korea Zinc planned the rights issue before the tender offer for treasury stocks was completed. It considered this a false statement and unfair trade, as the tender offer report did not properly disclose information related to the rights issue.
Korea Zinc announced, "We are not establishing any plans that would bring changes to the financial structure after the tender offer." It was revealed that Mirae Asset Securities, the underwriter of the rights issue, conducted due diligence for the rights issue from October 14 last year.
Korea Zinc withdrew the decision on the rights issue on November 13 last year.
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