Korea Zinc Proposes Cooperation to MBK... "Time to Stop Exhaustive Conflicts"

Park Ki-duk Holds Press Conference at Grand Hyatt Seoul
"We Will Proactively Open the Board of Directors to the MBK Alliance"
Chairman Choi Yoon-beom Also to Step Down as Board Chairman

Korea Zinc proposed a reconciliation to the Youngpoong-MBK Partners alliance (hereinafter referred to as the MBK alliance), with whom it has been engaged in a management rights dispute, on the 24th. The intention is to stop the four-month-long conflict and seek future cooperation.

On the same day, Park Ki-duk, CEO of Korea Zinc, held a press conference at the Grand Hyatt Seoul Hotel in Yongsan, Seoul, and stated to the MBK alliance, "We propose the start of dialogue for a grand compromise." Park said, "It is now time to stop the exhausting conflict filled with forced claims and slanders," adding, "For the sake of the company called Korea Zinc, for our shared dream, it is time to temporarily forget the past and find a reasonable solution for everyone."

Korea Zinc CEO Park Ki-deok is speaking at a press conference regarding the results of the extraordinary general meeting held on the afternoon of the 24th at the Grand Hyatt Hotel in Yongsan, Seoul. Photo by Yonhap News

Regarding the background of taking such a progressive stance, Park explained, "I pondered deeply on how to approach the extraordinary general meeting held the day before," and concluded, "We decided to make our best efforts so that the parties involved in the conflict and dispute can communicate and have dialogue together." However, he emphasized, "The MBK alliance seems to be framing our defense as being for Chairman Choi Yoon-beom personally, but I want to make it clear that such criticism is an adversarial merger and acquisition (M&A) strategy that insults and disregards Korea Zinc’s executives, technical staff, and labor union."

Park said, "Because our love for Korea Zinc is greater than the wounds, we are considering accepting the MBK alliance not as an enemy but as a new partner," and added, "If the grand compromise is accepted, Korea Zinc believes it can work together with the MBK alliance for a better future." He continued, "I believe it is possible for MBK to play a positive role as a partner of the company, which is the virtuous function of private equity funds," and said, "I hope MBK regains its composure and seriously considers our words."

As a proposal based on compromise, Park announced that the board of directors would be proactively opened to the MBK alliance. He said, "If we can cooperate and trust each other based on the development of Korea Zinc, I expect this will help promote diversity in the composition of the board," and added, "If MBK desires, we will also open the path for management participation." Park also stated, "Chairman Choi has promised to step down from the chairmanship of the board," and "This promise will be realized at the next board meeting."

In closing, Park once again requested the MBK side to contemplate and review cooperation, emphasizing, "The process of preparing for the extraordinary general meeting the day before was also a process for a new beginning." He said, "MBK must clearly understand that without everyone’s cooperation, the path ahead is full of great hardships in the process of wanting to be with Korea Zinc," and added, "I hope they deeply consider what the path of coexistence is and what the swamp of mutual destruction looks like."