Youngpoong, Koryo Zinc Chairman Choi Yoon-beom and Executives Face 400 Billion Won Compensation Lawsuit

Yeongpung, which is pursuing the acquisition of management rights of Korea Zinc together with the private equity fund MBK Partners, has filed a lawsuit seeking damages worth 400 billion KRW against Chairman Choi Yoon-beom of Korea Zinc and other executives.

On the 25th, Yeongpung announced that it recently filed a shareholder derivative lawsuit at the Seoul Central District Court against Korea Zinc’s Chairman Choi Yoon-beom, Vice Chairman Noh Jin-soo, and President Park Ki-duk, demanding compensation of 400.5 billion KRW from the company, claiming that the Korea Zinc management caused enormous losses related to the private equity fund One Asia Partners’ investment and the acquisition of Ignio Holdings.

In a press release on the same day, Yeongpung stated, "Chairman Choi Yoon-beom violated his duty of care by making abnormal investments and exercising arbitrary management, causing astronomical losses to Korea Zinc," and added, "Vice Chairman Noh and President Park, as former and current CEOs, executed Chairman Choi’s improper business orders as they were, thereby causing damage to the company, which is why they are included as defendants in the lawsuit."

Yeongpung cited cases where the management caused losses to the company, including investing approximately 560 billion KRW in eight funds of One Asia Partners without board approval, acquiring the U.S. startup electronic waste recycling company Ignio Holdings at an excessively high price, and allegations of awarding interior contracts worth tens of millions of KRW to C.S. Design Group.

Furthermore, Yeongpung raised suspicions that the private relationship between Chairman Choi, who is a middle school classmate of Chairman Ji Chang-bae of One Asia Partners, might have been the background for the investment, noting that Korea Zinc’s contribution accounts for nearly 87% of One Asia Partners’ total assets under management of about 600 billion KRW.

A Yeongpung official said, "This lawsuit is more than a simple demand for damages; it is the first step toward normalizing Korea Zinc’s management and restoring transparency," and added, "As the largest shareholder, we will do our best to hold Chairman Choi and the current management accountable for their irrational, irresponsible, and arbitrary management, and to protect the value of ordinary shareholders."

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