Korea Zinc "Claim of Spending $1 Million on Management Rights Defense is Completely False"

Korea Zinc Refutes Claims by Youngpoong and MBK
"Distortion of Facts by Ignoring Business Aspects"
"A Strategy for Building a Global Supply Chain"

Korea Zinc has fully denied claims that Chairman Choi Yoon-beom of Korea Zinc conducted a large-scale lobbying campaign targeting some U.S. politicians after the management rights dispute with Youngpoong and MBK Partners. The company explained that the lobbying contract was signed in December 2023, before the management rights dispute occurred, and that the contract was concluded for consulting purposes related to building a global supply chain.

Chairman Choi Yoon-beom of Korea Zinc is drinking water at the Korea Zinc press conference held on the 13th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Kim Hyun-min

On the 24th, Korea Zinc stated that the claims by Youngpoong and MBK that Chairman Choi spent a large amount of company funds lobbying the U.S. government during the management rights dispute are "completely false." A Korea Zinc official said, "The initial lobbying contract was signed on December 18, 2023, well before Youngpoong and MBK's hostile takeover (M&A) attempt occurred," adding, "The expenditure details from October 9 last year and January 21 this year cited by Youngpoong and MBK are merely periodic costs incurred after the contract."

Regarding the purpose of the lobbying, Korea Zinc explained in a press release, "Our company signed the contract for the purpose of monitoring trends and consulting with the U.S. federal government and think tanks to build a global supply chain for our various portfolio products, including resource recycling projects underway in the U.S. and secondary battery materials such as nickel." A Korea Zinc official added, "Nevertheless, Youngpoong and MBK completely disregarded these business aspects and distorted the facts by claiming it was lobbying for Chairman Choi's personal defense of management rights," and pointed out, "Such claims seriously damage the position of the U.S. Department of State and the honor of U.S. lawmakers."

Earlier, the U.S. Department of State warned in an official letter that the private equity fund's hostile M&A attempt against Korea Zinc could threaten U.S. strategic interests. It particularly mentioned the growing importance of building a supply chain decoupled from China worldwide, stating, "The U.S. must work closely with South Korea to block China's influence and establish a stable supply chain."

Meanwhile, the pivotal regular shareholders' meeting for the Korea Zinc management rights dispute will be held on the 28th. Attention is focused on which side?Youngpoong and MBK or Chairman Choi?will gain the upper hand at this meeting. In particular, the outcome of the court injunction deciding whether Youngpoong can exercise voting rights is expected to affect the calculations of both sides. If the injunction is dismissed, Youngpoong and MBK will not be able to exercise voting rights at the shareholders' meeting, allowing Chairman Choi's side to continue leading the board of directors.