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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] As suspicions of unfair trading surrounding Korea Zinc’s public rights issue persist, financial regulatory authorities are examining potential violations of capital market laws by Mirae Asset Securities, which managed the rights issue and the buyback led by Korea Zinc Chairman Choi Yoon-beom.
The focus of the investigation is on Mirae Asset Securities’ possible engagement in unfair business practices and its failure to prevent conflicts of interest. Authorities have also initiated inspections of KB Securities, which jointly managed Korea Zinc’s public rights issue and facilitated online subscription for the buyback.
On October 31, the Financial Supervisory Service (FSS) began an on-site inspection of Mirae Asset Securities. Regulators are particularly examining whether Mirae Asset Securities, which was responsible for both the buyback processing and the rights issue underwriting, was aware of the rights issue plan in advance.
The Investment Banking Division (IB2) and Team IB1 of Mirae Asset conducted due diligence on Korea Zinc’s rights issue between October 14 and 29. This due diligence began just three days after an amended tender offer filing by Korea Zinc on October 11, where the company raised its buyback price to 890,000 KRW per share. The amendment stated, “There are no concrete future plans that would alter the company’s governance, financial structure, or business content.” At that time, the same department within Mirae Asset that handled the buyback also managed the public rights issue underwriting.
This situation has prompted regulators to investigate whether Mirae Asset and Korea Zinc omitted disclosure of the rights issue plan in the amended filing. On October 31, Ham Yong-il, FSS Deputy Governor of Capital Markets and Accounting, stated, “It has been confirmed that there were no future financial structure plans disclosed in the [tender offer] filing. We will confirm such details with the securities firm involved.”
Following the inspection of Mirae Asset, the FSS began an on-site inspection of KB Securities on the morning of November 4. KB Securities managed the online subscription system for the Korea Zinc buyback and was a joint underwriter for the public rights issue. An FSS official commented, “KB Securities joined the [buyback] at a later stage, and we need to thoroughly investigate the circumstances around this delay.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
