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Photo = Youngpoong |
[Alpha Biz= Kim Jisun] Seoul, September 30 – Youngpoong Group has issued a statement refuting claims by Korea Zinc Chairman Choi Yoon-beom that its cooperation with MBK Partners amounts to a hostile takeover. Youngpoong stressed that the decision was an unavoidable measure to restore sound management and safeguard shareholder value.
In its official statement released on the 30th, Youngpoong emphasized that it remains the largest shareholder of Korea Zinc, and that the partnership with MBK Partners was intended to address what it described as Chairman Choi’s unreasonable management practices.
Youngpoong criticized Chairman Choi for holding only 1.8% of shares yet pushing through dilutive third-party share issuances and cross share swaps that eroded roughly 16% of shareholder value. The group further accused him of attempting to conduct a tender offer of treasury shares using company funds and creating circular shareholding structures via overseas affiliates, thereby undermining the rights of the legitimate majority shareholder.
Youngpoong likened Choi’s actions to “a tenant claiming ownership of a house and trying to evict the landlord.”
On its cooperation with MBK Partners, Youngpoong explained that it was “a move to preserve transparent and sound governance.” The group stressed that the main terms of the management cooperation agreement, which Choi’s side has criticized as opaque, were already disclosed in detail in last year’s tender offer filing.
Citing further examples of alleged mismanagement, Youngpoong pointed to KRW 560 billion invested in One Asia Partners, a firm founded by Choi’s middle school classmate, without board approval, as well as the KRW 580 billion acquisition of Ignio Holdings, a company in a state of complete capital erosion. These, Youngpoong claimed, represent reckless decisions that inflicted serious losses on the company.
Concluding its statement, Youngpoong declared:
“Korea Zinc does not belong to any one individual. As the largest shareholder, we will continue to take responsible measures to normalize management and protect both shareholder interests and corporate value.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
