Court Orders Korea Zinc to Submit Documents on One Asia Fund Investment

Young Poong and MBK: "Unclear Aspects Must Be Addressed"

Yonhap News Agency

The court has ordered Korea Zinc to submit documents that can clarify the circumstances under which the company invested as the largest limited partner in a fund operated by Choi Yoonbum's schoolmate.

On May 27, representatives for Young Poong and MBK Partners announced that the Seoul Central District Court, on May 21, ordered Korea Zinc to submit internal documents related to the "Korea Growth No. 1" and "Arbitrage No. 1" funds managed by One Asia Partners, in connection with the ongoing shareholder derivative lawsuit involving One Asia and Ignio.

One Asia Partners is a private equity firm operated by Ji Changbae, who attended elementary and middle school with Chairman Choi. Korea Zinc effectively participated as the largest limited partner in One Asia Partners' Korea Growth No. 1 and Arbitrage No. 1 funds. According to disclosures and related filings, Korea Zinc is known to have contributed approximately 94.64% of Korea Growth No. 1 and approximately 54.59% of Arbitrage No. 1.

Young Poong and MBK, who are in a management rights dispute with Chairman Choi, pointed out that after Choi acquired a stake in Chungho Comnet through a personal investment partnership (Yeorigo No. 1), Korea Zinc subsequently invested in Korea Growth No. 1, and a portion of the fund’s capital then flowed to Chungho Comnet. They argue that such a flow of funds is not simply an investment failure, but is closely tied to the interests shared between Chairman Choi and Mr. Ji.

Previously, Mr. Ji was convicted of transferring the Korea Growth No. 1 fund's capital to an external corporation and then lending it to Chungho Enterprise. Young Poong and MBK assert that, as a result, the structure led to the fund capital, contributed by Korea Zinc, being used to relieve Chungho Comnet's debt burden.

A representative from Young Poong and MBK stated, "This decision by the court recognizes the need for related materials to clarify the investment process and internal decision-making behind One Asia Partners' funds. In particular, it will specifically confirm what kind of review and approval processes were undertaken before the funds—where Korea Zinc effectively participated as the largest and sole limited partner—were executed, how the company monitored and managed the funds after the investment, and how the investment in One Asia Partners' funds was structurally connected to the transactions involving Chungho Comnet."

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