"Refusal of Sulfuric Acid Contract Deemed Legitimate"…Korea Zinc Achieves Final Victory in Young Poong Injunction Lawsuit

Court: "Reasonable Grounds for Refusal to Transact"
Finalized Without Further Appeal

Korea Zinc announced on the 19th that it has achieved a final victory in the injunction case filed by Young Poong regarding the prohibition of refusal to transact for the sulfuric acid handling agency contract.

Korea Zinc CI.

According to Korea Zinc, after the Seoul High Court dismissed Young Poong's appeal on April 28, Young Poong abandoned its further appeal, confirming Korea Zinc's victory as of the 14th.

The company explained that the court ruling recognized that Korea Zinc's refusal to renew the sulfuric acid handling agency contract with Young Poong, based on reasons such as the safety of workers at the Onsan Smelter, the safety of Ulsan citizens, environmental protection, and the burden of managing hazardous chemicals, was a legitimate exercise of rights.

Previously, in April 2024, Korea Zinc notified Young Poong of its refusal to renew the sulfuric acid handling agency contract, citing the aging of sulfuric acid management facilities, insufficient storage space, and increased legal risks associated with handling additional hazardous chemicals. In response, Young Poong filed for an injunction with the court in July of the same year, requesting that Korea Zinc continue processing sulfuric acid generated at the Seokpo Smelter in Bonghwa County, North Gyeongsang Province.

However, the Seoul Central District Court dismissed Young Poong's injunction request in August last year, and the Seoul High Court also rejected the appeal in April this year.

In its decision, the court stated, "Young Poong had ample time to make arrangements to handle sulfuric acid on its own, but instead entrusted the processing to Korea Zinc without making efforts to establish alternative measures."

The court also acknowledged that Korea Zinc had begun dismantling the aging storage tanks starting in 2019 and had provided a sufficient grace period by continuing to handle sulfuric acid under the agency contract until January 2025, even after the contract ended.

The court further determined that Young Poong could secure alternative processing solutions, such as expanding sulfuric acid sales or exporting via tank lorries.

A representative from Korea Zinc stated, "Through this final victory, the legitimacy of our refusal to renew the sulfuric acid handling agency contract has been confirmed," adding, "We will continue to prioritize the safety of our workers and citizens, environmental protection, and fulfill our social responsibilities."

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