2025-01-09
(YONHAP NEWS AGENCY, JAN. 09, 2025)
SEOUL, Jan. 9 (Yonhap) — The chairman of Korea Zinc Co., the world’s largest zinc smelter, on Thursday accused Young Poong Corp. and MBK Partners Ltd. of conducting a “smear campaign” to gain management control of the company amid a deepening control battle.
“The only purpose (of Yoong Poong and MBK Partners coalition) I see is taking over Korea Zinc’s board through a smear campaign,” Korea Zinc Chairman Choi Yun-beom said in an interview with Yonhap News Agency.
Korea Zinc has been caught in a monthslong battle to fend off a takeover bid by the Young Poong alliance, which initiated the management tussle in September by launching a tender offer for an additional stake in the world’s biggest refined zinc smelter.
The Young Poong camp now controls 39.83 percent of Korea Zinc, while Choi and related parties own 35.4 percent of the company.
Choi said the Young Poong camp is “contradicting itself” by propounding negative propaganda against him and his business plan while also saying it will continue with Choi’s initiative.
“They attack me, saying the company is in a crisis because I made investments in a lax manner, but at the same time, tell foreign media they have decided to invest in Korea Zinc because it has high profitability and will continue with the ‘Troika Drive’ business,” he said.
Troika Drive refers to Choi’s push to foster secondary battery materials, resource recycling and renewable energy businesses as part of efforts to find future growth engines for Korea Zinc. Young Poong has opposed the plans, preferring strong dividends.
Choi also said the Yoong Poong and MBK alliance will likely sacrifice Korea Zinc’s future if they gain management control of the company by focusing on raising short-term profits than promoting its long-term growth.
