Young Poong: "Choi Yoonbeom Must Clarify Cheongho Comnet Allegations"... Korea Zinc: "Investments Were Lawful"

"Acquisition of Privately Placed Bonds Issued by Fund CEO's Unrelated Company"
Funds Allegedly Repeatedly Channeled
to Company Owned by Choi Yoonbeom's Schoolmate

Young Poong and MBK Partners argued that Korea Zinc’s funds have been repeatedly invested in companies unrelated to its core business, and insisted that the decision-making process should be made public.

Young Poong and MBK stated on the 18th that after Korea Zinc acquired approximately 7 billion won in privately placed bonds from Cheongho Comnet (owned by Ji Chang-bae, CEO of One Asia Partners) in February 2019, there were indications that funds from a One Asia Partners fund—almost entirely financed by Korea Zinc—were again used to resolve Cheongho Comnet’s redemption issues. They asserted, “It must be clarified why Korea Zinc’s funds repeatedly flowed into the company of Ji Chang-bae, an elementary and middle school classmate of inside director Choi Yoon-beom.”

Young Poong and MBK further pointed out that questions are growing as to whether the privately placed bond acquisition in February 2019 served as the starting point for Korea Zinc’s investment of around 600 billion won in One Asia Partners.

According to Young Poong and MBK, Korea Zinc is believed to have acquired approximately 7 billion won worth of privately placed bonds issued by Cheongho Comnet in 2019. CEO Ji established the new asset management firm One Asia Partners at the end of May 2019. He was convicted last October of misappropriating about 10 billion won from the Korea Growth No. 1 Fund—94.64% of which was funded by Korea Zinc—to resolve cash flow shortages at Cheongho Comnet and its affiliates.

Young Poong and MBK claimed, “In the end, Korea Zinc first injected funds into Cheongho Comnet, and later, the repayment burden was resolved with funds from a Korea Zinc-financed fund,” adding, “It was a structure where Korea Zinc’s debt was repaid with Korea Zinc’s own money.”

They continued, “At the time, Cheongho Comnet appeared to lack the capacity to independently redeem the privately placed bonds. However, after establishing One Asia Partners, CEO Ji secured Korea Zinc’s funds, which were then used to resolve Cheongho Comnet’s problems.”

Young Poong and MBK emphasized, “It must be revealed why Korea Zinc acquired bonds from a company unrelated to its main business, why 600 billion won was invested in the fledgling private equity firm One Asia Partners, and what role inside director Choi Yoon-beom played in the process.” They added, “It should also be investigated whether the support for Cheongho Comnet in February 2019 marked the beginning of the Choi Yoon-beom–Ji Chang-bae economic community,” and called on Korea Zinc’s board of directors and audit committee to fully disclose all relevant data and decision-making processes.

Meanwhile, Korea Zinc strongly refuted the claims in a statement. Korea Zinc said, “All investments and capital contributions are conducted in accordance with relevant laws and internal company procedures. Investing a portion of available funds in financial products such as bonds and funds is a revenue diversification strategy and an asset management method common among many companies.”

They further criticized, “Young Poong and MBK have long engaged in distorted slander, damaging Korea Zinc’s corporate value and persistently undermining Korea Zinc, which must serve as a core mineral supply chain hub and play an important role in the Korea-U.S. economic and security alliance.”

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