MBK "Funds and time are ample... Will take dispute with Chairman Choi to the end"

Prepared for a Prolonged Battle...
Utilizing Every Possible Means

Youngpoong and MBK Partners emphasized that they will not give up midway in the dispute with Chairman Choi Yoon-beom of Korea Zinc. This is because the illegal activities are clear, and they have sufficient financial and time resources.

On the 24th, Kim Kwang-il, Vice Chairman of MBK Partners, held an online press conference and stressed this point. Vice Chairman Kim said, "Chairman Choi hopes we will give up, but we have plenty of time and funds," adding, "We intend to do everything possible to get into the Korea Zinc board of directors." Unlike private equity funds that retreated quickly in past management disputes, they are prepared for a long-term battle.

He continued, "Chairman Choi himself has been reported to the Southern District Prosecutors' Office, and we will also file complaints for breach of fiduciary duty and violations of the Fair Trade Act," and expressed confidence by saying, "Although his director term is limited, our fund has a 10-year maturity and can be extended twice by one year each." However, he stated that they do not intend to deliberately persuade large corporations known to be friendly shareholders of Chairman Choi. Vice Chairman Kim said, "We are not in a position to ask for help from Hanwha, LG, or Hyundai Motor, and I believe they will make their own judgments based on their interests," adding, "I trust that Chairman Choi will correct how his poor decisions have damaged shareholder value and corporate value."

In fact, Hyundai Motor did not attend the extraordinary shareholders' meeting the day before. As of the end of last year, Hyundai Motor holds a 5.76% stake in Korea Zinc (based on voting rights). Although no clear reason was given, it is interpreted as indirectly showing a neutral stance in the management dispute.

Youngpoong and MBK are also considering various measures to the extent of contemplating the mutual share restriction used by Korea Zinc. Vice Chairman Kim explained, "If the injunction to invalidate the mutual share restriction does not succeed, we do not rule out using the same method," adding, "This shows how seriously we view the matter."

Vice Chairman Kim said, "If we cannot win the complaints or injunctions, it will be difficult to participate in the Korea Zinc board of directors," but added, "Nevertheless, I want to tell Korea Zinc shareholders that the current situation is difficult for the board management, the Choi family, overseas affiliates, and Youngpoong shareholders alike, so the management must be replaced to stabilize Korea Zinc and prevent further tricks."

Kim Kwang-il, Vice Chairman of MBK Partners, is holding an online press conference on the 24th to explain future response plans.

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