Park Han-sol reports on Korea's financial regulators, along with fintech and insurance. She previously wrote about the art world, from biennales and exhibitions to fairs and auctions, with a focus on Seoul and the figures shaping the scene. Before joining The Korea Times, she spent a year at ABC News' Seoul bureau, contributing to coverage of major Asia-Pacific events.
MBK Partners threatens legal action against Korea Zinc management over 'false' EGM materials
Korea Zinc logo at the company's headquarters in Seoul / Courtesy of Korea Zinc
By Park Han-sol
Private equity firm MBK Partners has threatened legal action against Korea Zinc management over what it called “false and misleading” claims about companies in its investment portfolio, escalating the latest fight for control of the zinc smelter ahead of an extraordinary general meeting (EGM).
Korea Zinc is due to hold the EGM on Sept. 9, with shareholders set to vote on five outside directors, including one audit committee member. The MBK Partners-Young Poong alliance, the smelter’s largest shareholder, is seeking to take control of the board in a contest with Chairman Choi Yun-beom.
MBK objected to explanatory materials for the meeting posted on Korea Zinc’s website by Choi’s camp, accusing the company of selectively presenting and distorting facts about the performance of executives at its portfolio companies.
The private equity firm demanded that the problematic materials be removed and that measures be taken to prevent similar claims from being made again. It warned that it could pursue criminal complaints and other legal action if its demands are not met.
The disputed materials challenge the management capabilities of Young Poong and MBK and raise concerns about the potential impact on corporate governance if MBK takes control of Korea Zinc. They cite the post-acquisition performance and financial condition of companies previously acquired by MBK as alleged examples of the risks the private equity firm could pose as an operator.
“Instead of explaining to shareholders the fundamental issues they face, such as allegations of various illegal or improper acts and sanctions from financial authorities, Korea Zinc’s current management, including Choi Yun-beom, is dragging unrelated companies into a shareholder vote and distorting the facts,” an MBK Partners official said.
“If Korea Zinc does not immediately remove the false materials and continues its improper solicitation of shareholder votes, we will take all available legal measures to protect shareholders’ interests and preserve market confidence.”