Korea Zinc: "Young Poong Should Address the Reinvestigation, MBK the Homeplus Crisis First"

"Stop the wasteful public opinion campaign and help enhance corporate value"

Korea Zinc has called on MBK Partners and Young Poong, with which it is embroiled in a management control dispute, to stop making one-sided allegations and waging a public opinion campaign, and to first resolve the controversies surrounding themselves.

A view of Korea Zinc's Onsan Smelter. Korea Zinc

In a statement issued on Nov. 3, Korea Zinc criticized the two companies, saying, "MBK and Young Poong are continuing their public opinion campaign against Korea Zinc with one-sided claims and provocative language, while ignoring the serious controversies and questions of accountability they themselves face."

Korea Zinc cited media reports that police had launched a reinvestigation into Jang Hyung-jin, an adviser to the Young Poong Group, over allegations that Young Poong's Seokpo Smelter contaminated the Nakdong River with heavy metals. Controversy over an inadequate investigation arose after the initial decision not to refer the case to prosecutors, and the case was reportedly transferred to a metropolitan investigation unit following a decision by the Seoul Metropolitan Police Agency's Investigation Review Committee to reopen the investigation.

"If Young Poong truly emphasizes corporate responsibility and governance, it should sincerely address the environmental issues and related investigations involving itself, rather than focusing on making allegations against another company," Korea Zinc said.

Korea Zinc also called on MBK Partners to respond responsibly to the Homeplus crisis. It said that Homeplus's management accountability and the harm suffered by workers and suppliers had been major issues in the National Assembly's parliamentary audit, and that criticism had continued over MBK Chairman Kim Byung-joo's failure to attend the audit.

"MBK should act responsibly on an issue affecting the livelihoods of countless stakeholders, yet it is instead devoting itself to questioning the appropriateness of Korea Zinc's investments and the value for its shareholders," Korea Zinc said.

Korea Zinc also pushed back against investment-related allegations recently raised by MBK and Young Poong. It said the two companies were interpreting arbitrarily investment transactions conducted by separate legal entities based on their own respective judgments.

"Reasonable oversight and constructive criticism are necessary, but we will respond firmly to attempts to present allegations as established facts without objective verification or to use them as a tool in a wasteful public opinion campaign," Korea Zinc said.

It added, "As this is a critical time when global supply chains for key minerals are being rapidly reshaped, MBK and Young Poong, as major shareholders, should also contribute to the company's sustainable growth and the enhancement of value for all shareholders."

Earlier that morning, Young Poong issued a statement calling on Korea Zinc Director Choi Yun-beom to directly explain allegations that he had misappropriated company funds for personal use. Young Poong alleged a conflict of interest, saying that a fund backed by Korea Zinc made follow-on investments totaling 79 billion won in four unlisted entertainment companies in which Choi and his family had invested first.

This content was produced with the assistance of AI translation services.