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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, November 2, 2025 — In an exclusive report by Money Today, it has been revealed that the Korea Fair Trade Commission (KFTC) has launched a formal investigation into Young Poong Group and its affiliate YPC Co., Ltd. over alleged violations of anti–circular shareholding rules under the Monopoly Regulation and Fair Trade Act.
According to industry sources cited by Money Today, the KFTC’s Corporate Group Surveillance Bureau recently notified Korea Zinc Co., which filed the original complaint, that it had initiated an official review into the case. The commencement of the review indicates that the KFTC has begun a formal probe.
The investigation aims to determine whether Young Poong and YPC breached Article 21 (Prohibition of Mutual Investment) and Article 22 (Prohibition of Circular Shareholding) of the Fair Trade Act.
Korea Zinc had previously filed a complaint alleging that Young Poong created a new circular shareholding structure through its affiliates to expand control and obstruct Korea Zinc’s lawful management defense efforts.
According to the filing, Young Poong established YPC on March 7 as a wholly owned subsidiary and transferred its 5,262,450 shares of Korea Zinc (25.42% stake) to YPC via in-kind contribution. This move was allegedly intended to circumvent voting-right restrictions under the Commercial Act, as such restrictions do not apply to limited liability companies (Yuhan Hoesa) like YPC.
This restructuring effectively created a circular shareholding loop — Young Poong → YPC → Korea Zinc → SMH (Korea Zinc’s overseas subsidiary) → Young Poong.
Under Article 22 of the Fair Trade Act, new circular shareholding formations among companies belonging to large business groups subject to cross-shareholding restrictions are strictly prohibited.
Furthermore, Young Poong acquired 10 additional Korea Zinc shares on March 12, establishing a second ownership loop — Young Poong → Korea Zinc → SMH → Young Poong.
YPC is a wholly owned subsidiary of Young Poong and is led by the same CEO, Kim Ki-ho, who concurrently serves as YPC’s representative director. The company’s official business purpose is to “acquire and manage shares of Korea Zinc to oversee its operations,” suggesting it functions primarily as a control vehicle.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
