Korea Zinc: "MBK, Repeatedly Filing Injunctions Based on Nonexistent False Claims"

Regarding the provisional injunction application filed by MBK Partners and Yeongpung against Korea Zinc to prohibit the disposal of treasury shares, Korea Zinc criticized, saying, "They are trying to spread a negative image of Korea Zinc based on false facts that do not even exist."

On the 13th, Korea Zinc issued a statement saying, "Korea Zinc plans to legally cancel all treasury shares acquired through a tender offer at an appropriate time," and emphasized, "We have clearly stated before that the opposing party's claims are groundless and neither exist nor are possible."

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On the 11th, MBK and Yeongpung filed a provisional injunction application at the Seoul Central District Court to prohibit the disposal of approximately 2.04 million treasury shares acquired by Korea Zinc through a tender offer, claiming that "there is a possibility of a trick to use a third party to exercise voting rights on dates close to the record dates for the extraordinary general meeting and the regular general meeting on December 20 and December 31."

In response, Korea Zinc pointed out that the MBK-Yeongpung alliance had previously filed two provisional injunction applications during the recent tender offer process, both of which were dismissed, stating, "Despite being under investigation for fraudulent unfair trading, price manipulation, and market disruption using such provisional injunctions, they have not abandoned this habit."

Furthermore, Korea Zinc claimed that although several businesses invested in by MBK have failed, MBK applies a completely different standard to Korea Zinc's new business investments. MBK recently issued a statement criticizing Korea Zinc, saying, "Private equity firms cannot succeed in all investments. It is the same logic as new businesses executed by all companies not always thriving," directly targeting Korea Zinc and its management.

In response, Korea Zinc criticized, saying, "While claiming that new businesses do not always thrive, they are targeting the resource recycling business, which is moving beyond the initial investment stage toward stabilization, to justify a hostile takeover (M&A) of our company, showing contradictory behavior," and called it "hypocrisy itself."

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