Korea Zinc Faces Lawsuit to Nullify New Share Issuance Related to Third-Party Allotment Paid-In Capital Increase

Korea Zinc has announced that a lawsuit challenging the validity of new share issuance related to a third-party allotment capital increase has been filed.

Yonhap News Agency

On January 8, Korea Zinc disclosed that MJ Partners Co., Ltd. has filed a lawsuit seeking to nullify the new share issuance against the company at the Seoul Central District Court.

This lawsuit contests the validity of 2,209,716 common shares issued by Korea Zinc to its U.S. local subsidiary, Crucible JV LLC, on December 26, 2025, following a board resolution on December 15, 2025. The plaintiff argues that the new share issuance was carried out in violation of the Commercial Act and the company's articles of incorporation, claiming it was intended to defend management control rather than for any specific business necessity.

The shares in question were issued at 1,290,133 won per share, with total funds raised amounting to 2.85082821 trillion won. The capital increase was conducted through a third-party allotment, with the payment date set for December 26, 2025.

Korea Zinc stated that it plans to respond in accordance with legal procedures.

Meanwhile, it is known that MJ Partners, which filed the lawsuit, held two shares of Korea Zinc as of the second half of last year.