Korea Zinc has criticized the alliance between Youngpoong and MBK Partners, accusing the group of using routine legal proceedings to fuel a broader public relations campaign as the battle for control of the company continues.
The dispute intensified following a recent court order requiring Korea Zinc to submit internal documents related to investments connected to One Asia Partners. Young Poong and MBK described the decision as evidence that the court considered the issues significant enough to warrant further scrutiny. Korea Zinc, however, characterized the order as a standard procedural step that should not be interpreted as support for any particular claim.
In a statement released on May 28, Korea Zinc argued that its opponents were overstating the significance of the court’s actions. The company said ordinary legal procedures were being portrayed as major victories in an effort to influence market sentiment and media coverage before any final judicial determination has been made.
Korea Zinc further claimed that Young Poong and MBK have focused their attention on pursuing a hostile takeover campaign rather than addressing challenges facing their own businesses. The company specifically referenced environmental concerns linked to Young Poong and the ongoing Homeplus restructuring issues involving MBK, urging the alliance to refrain from what it described as unnecessary public opinion battles.
According to Korea Zinc, the Seoul Central District Court’s document submission order is a routine measure commonly used in shareholder derivative lawsuits to verify facts and gather evidence. The company emphasized that the order does not indicate that the court has accepted any allegations as true, nor does it represent a ruling on the merits of the case.
Korea Zinc also warned against drawing premature conclusions from the legal process, arguing that selective interpretations of procedural developments risk turning the courts into a platform for public relations efforts rather than legal fact-finding.
Youngpoong and MBK Partners, meanwhile, maintain that the court’s request for documents relating to One Asia Partners funds demonstrates the relevance of the materials to the case. The alliance said the documents could provide greater insight into how investment decisions were reviewed and approved, how fund performance and management were monitored, and whether the investments were connected to transactions involving Cheongho Comnet.
The alliance has repeatedly questioned Korea Zinc’s participation in funds managed by One Asia Partners, noting that the company was effectively the largest investor in several vehicles overseen by fund manager Ji Chang-bae, who is known to have longstanding personal ties with Korea Zinc Chairman Choi Yun-beom.
As the legal proceedings continue, both sides remain engaged in a high-profile struggle over governance, transparency, and the future direction of Korea Zinc.