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Photo courtesy of Korea Zinc |
[Alpha Biz= Kim Jisun] On June 18, the Seoul Central District Court conditionally dismissed a wage garnishment request filed by Young Poong Corp. against Park Ki-deok, CEO of Korea Zinc, in an ongoing legal dispute concerning voting rights.
The court acknowledged that Young Poong had provided sufficient evidence to support its claim that it suffered damages due to the alleged unlawful restriction of its voting rights by Korea Zinc. However, it lifted the garnishment on half of the KRW 100 million requested, citing the prolonged nature of the main lawsuit and the fact that the garnished asset is Park’s salary. The dismissal is contingent on the provision of a court-approved security deposit.
The legal dispute stems from a controversial share transaction during an extraordinary general meeting held in January. Korea Zinc had arranged for its Australian affiliate, SMC, to purchase shares in Young Poong previously owned by the family of Chairman Choi Yoon-beom. This created mutual shareholding between the two companies, which Korea Zinc used to restrict Young Poong’s voting rights as the largest shareholder.
In response, Young Poong claimed damages and sought to garnish Park's wages at Korea Zinc, asserting that he played a role in the deliberate restriction of its rights. Park has denied the allegations, arguing that the restrictions were legally justified.
The case is expected to continue in the main lawsuit, while the partial lifting of the garnishment allows Park to retain a portion of his salary pending final judgment.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
