FSS: "Reports of MBK and Youngpoong Prosecutor Referral Are Inaccurate"

Previous Day Media Report on FSC Prosecutorial Referral

On the 9th, the Financial Supervisory Service (FSS) officially stated that the report from the previous day claiming that MBK Partners and Yeongpung were referred to the prosecution was "not true."

Earlier in the afternoon, a media outlet reported that "the financial authorities discovered that MBK Partners received undisclosed consulting information from Korea Zinc and misused the related information for a hostile merger and acquisition (M&A), and referred the case to the prosecution."

The outlet also reported that "the prosecution was also handed allegations of stock price manipulation related to a suspicious large-scale sale on the last day of the public tender offer by Yeongpung and MBK, which caused the stock price to fall."

The FSS had referred Korea Zinc’s management and others to the prosecution on October 30 last year for violating the Capital Markets Act, following Korea Zinc’s announcement of a 2.5 trillion won rights offering, through a fast-track (expedited investigation) process.

The FSS is reportedly considering an investigation into the false claims by Korea Zinc that MBK Partners and Yeongpung were also referred to the prosecution.

Meanwhile, the outcome of the management rights dispute over Korea Zinc between the Yeongpung-MBK alliance and Chairman Choi’s side is expected to be decided at the extraordinary general meeting of shareholders scheduled for the 23rd.