Youngpoong: "Korea Zinc's Havana No. 1 Fund Used in SM Price Manipulation"

Korea Zinc Invested 99.8 Billion Won in Havana No. 1 Fund
Received Cash Refund and SM Shares as In-Kind Dividend
Youngpoong: "Whether Chairman Yoonbeom Choi Approved Is the Key"

Youngpoong, the largest shareholder of Korea Zinc, has once again called for an investigation into Yoonbeom Choi, Chairman of Korea Zinc, in connection with the SM Entertainment stock price manipulation case. This is a rebuttal to Korea Zinc's statement the previous day asserting that it was "not involved in price manipulation."

Yoonbeom Choi, Chairman of Korea Zinc. Photo by Hyunmin Kim

On September 2, Youngpoong stated, "It is becoming increasingly clear that Korea Zinc was the source of the key funds used in the SM Entertainment stock price manipulation," adding, "The fact that Korea Zinc received back half of the funds invested in the Havana No. 1 Fund within just two months, and then liquidated the fund early after a year and a half, receiving SM Entertainment shares directly as an in-kind distribution, is definitive evidence."

According to Youngpoong, Korea Zinc invested 99.8 billion won in the Havana No. 1 Fund, managed by One Asia Partners, in February 2023. The funds were used to purchase SM Entertainment shares on February 16 and 17 of the same year. Youngpoong claims that in April of that year, Korea Zinc received a cash distribution of 52 billion won, and in December, it received an in-kind dividend of approximately 440,000 shares of SM Entertainment (worth about 40 billion won). The fund was dissolved in January 2024 and liquidated in March.

Youngpoong argued, "The series of actions-amending the articles of incorporation, injecting funds, acquiring shares, distributing cash, in-kind dividend, and early liquidation-was not a simple investment activity but part of a price manipulation scheme," adding, "The core issue is whether Chairman Yoonbeom Choi was aware of and approved this." Youngpoong also emphasized, "The SM Entertainment shares currently held by Korea Zinc are evidence of who provided the funding," stressing, "An investigation into Chairman Choi can no longer be delayed."

The previous day, Youngpoong had identified Korea Zinc as the "source of funds for price manipulation" and called for an investigation. Korea Zinc responded by stating, "It was merely a financial investment and unrelated to any illegal activity," and added, "The specific execution was led by the fund manager (GP)."

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