[Changgeol Choi Passes Away] Honoring a 50-Year Partnership... Korea Zinc and Youngpoong Enter a Temporary Lull

Advisor Hyeongjin Jang Pays Respects to Honorary Chairman Changgeol Choi
Unofficial Visits by Youngpoong Executives Continue
"Disputes Likely to Subside During Mourning, But Tensions Remain"

With the passing of Changgeol Choi, Honorary Chairman of Korea Zinc, the management rights dispute between Korea Zinc and Youngpoong, which has continued for over a year, has entered a brief lull. Although the atmosphere has temporarily calmed as Hyeongjin Jang, Advisor at Youngpoong and a former business partner, visited the memorial altar to pay his respects, observers note that the underlying conflict over control, which surfaced after Chairman Yoonbum Choi took charge, still persists.

According to industry sources on October 8, Hyeongjin Jang, Advisor to Youngpoong Group, visited the memorial altar for the late Honorary Chairman Choi at Seoul Asan Medical Center in Songpa-gu, Seoul, around noon the previous day. A Youngpoong representative stated, "It was not an official company event; he visited in a personal capacity," adding, "Given their relationship since the company’s founding, he wished to pay his final respects." It was reported that Chairman Yoonbum Choi personally greeted Advisor Jang at the site and exchanged a brief greeting.

Founder Kiho Choi (4th from the right in the front row) and Honorary Chairman Changgeol Choi (3rd from the left) at the Korea Zinc founding ceremony on August 1, 1974. Provided by Korea Zinc

Within Youngpoong, it is known that other unofficial visits to pay respects also took place. A company official said, "As far as I know, some executives also visited privately," adding, "There are no official company plans for a memorial visit or related events at this time."

The relationship between the late Honorary Chairman Choi and Advisor Jang dates back 50 years to the founding of Korea Zinc. Korea Zinc was established in 1974 as a joint venture between the late Chairman Kiho Choi and the late Chairman Byunghee Jang. At that time, Honorary Chairman Choi oversaw the construction of the Onsan Smelter and led on-site operations, directly negotiating with the government, the National Investment Fund, Korea Development Bank, and the International Finance Corporation (IFC) to secure funding. Advisor Jang assisted his father, Byunghee Jang, and was involved in the management of Korea Zinc from its early days, maintaining a close relationship with Honorary Chairman Choi. This cooperation between the two families drove the growth story of Korea’s non-ferrous metals industry.

However, relations between the two families cooled rapidly in 2022 when Yoonbum Choi succeeded to the management of Korea Zinc. As Youngpoong sought to expand its management involvement under the pretext of "enhancing management transparency," Korea Zinc countered by accusing Youngpoong of "attempting to usurp control." The decisive conflict erupted in September last year when Youngpoong, in partnership with private equity fund MBK Partners, launched a public tender offer for Korea Zinc shares. Since then, both sides have engaged in legal battles over issues such as raising the tender offer price, interpreting the management cooperation agreement, and the right to appoint board members.

Hyeongjin Jang, Advisor at Youngpoong. Yonhap News Agency

Industry insiders predict that this recent condolence visit may lead to a temporary "truce." They cite the cultural tendency to refrain from public disputes during a mourning period. One industry official commented, "With the passing of Honorary Chairman Choi, it will be difficult for Youngpoong to apply immediate pressure," adding, "At least during the funeral and shortly thereafter, both sides are likely to avoid public statements or actions." In fact, Youngpoong has temporarily paused its joint campaign with MBK Partners.

However, most believe that a fundamental reconciliation is unlikely. Another industry expert noted, "With Chairman Yoonbum Choi strengthening his independent leadership, it will not be easy for Youngpoong to scale back its push for greater management involvement," predicting that the standoff could become prolonged. In particular, MBK Partners, in alliance with Youngpoong, is aiming to acquire additional shares and increase its board representation following the public tender offer. If Korea Zinc responds in kind, the conflict between the two sides could resurface. The official added, "For now, both sides have paused, but after the funeral, each is likely to recalibrate its internal strategy," concluding, "Ultimately, it will come down to a power struggle between Chairman Yoonbum Choi and the MBK-Youngpoong alliance."