Chairman Choi Yoon-beom's Side Withdraws Injunction to Prohibit MBK and Youngpoong Management Cooperation Contract Enforcement

Choi Yoon-beom, chairman of Korea Zinc, has withdrawn the injunction application seeking to prohibit the enforcement of the management cooperation agreement between Yeongpung and MBK Partners, his competitors in the shareholding battle, on the grounds of breach of trust.

According to the legal and investment banking (IB) sectors on the 24th, Yeongpung Precision submitted a withdrawal letter for the injunction against Yeongpung's management to the Civil Division 50 of the Seoul Central District Court the day before. The second hearing for this case was scheduled for the 25th.

Earlier on the 6th of this month, Yeongpung Precision filed the injunction arguing that MBK having a call option and a tag-along right on some of the Korea Zinc shares held by Yeongpung only benefits MBK and harms Yeongpung, constituting a breach of trust.

Yeongpung Precision and the Choi family hold about 16% of Yeongpung's shares, and Yeongpung Precision is controlled by Chairman Choi's side.

MBK issued a statement regarding Yeongpung Precision's withdrawal of the injunction, criticizing, "Chairman Choi's side has quietly withdrawn the injunction prohibiting the enforcement of the management cooperation agreement, which was the basis for MBK and Yeongpung's public tender offer for Korea Zinc, showing a self-contradictory stance."

MBK stated, "Chairman Choi's side, through Yeongpung Precision, filed an injunction seeking to prohibit the enforcement of the management cooperation agreement between Yeongpung and MBK, but suddenly submitted a withdrawal letter to the court around 4:30 p.m. after the market closed on the last day of the tender offer (the 23rd). By withdrawing the injunction themselves, Chairman Choi's side has effectively admitted that their claim that the management cooperation agreement between MBK and Yeongpung constitutes a breach of trust is groundless."

Additionally, MBK said, "MBK and Yeongpung will continue to hold Chairman Choi's side accountable for spreading false information and other market disruption activities."

This content was produced with the assistance of AI translation services.