Korea Zinc Passes First Hurdle for National Core Technology Designation... Outlook to Be Clarified in First Half of Year

Korea Zinc's smelting technology has recently passed the review of the steel expert committee under the Ministry of Trade, Industry and Energy, bringing it one step closer to being designated as a National Core Technology. If designated as a National Core Technology, it could become a significant variable in the ongoing management rights dispute with Young Poong and MBK Partners, drawing increased attention.

Overview of Korea Zinc Onsan Smelter. Provided by Korea Zinc

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According to industry sources on April 29, the steel expert committee of the Ministry of Trade, Industry and Energy completed its review of two smelting technologies submitted by Korea Zinc in mid-April: antimony metal production technology and hematite production technology. The results have been forwarded to the Trade Security Bureau of the ministry. If the remaining procedures, including the Trade Security Bureau's deliberation and the regulatory review by the Industrial Technology Committee, proceed as scheduled, the technologies could be officially designated as National Core Technologies as early as the first half of the year.

Although the specific results of the review have not been disclosed, an official from the ministry stated, "The administrative notice is expected to be issued as early as this month." The administrative notice is an official procedure in which the ministry gathers additional opinions prior to the listing of a National Core Technology, and it is expected to proceed as planned unless unforeseen circumstances arise.

The technologies under consideration for National Core Technology designation are: the "hematite production technology using leaching in zinc sulfate solution," which economically recovers iron during the zinc smelting process, and the "antimony metal production technology using diaphragm electrolysis," a hydrometallurgical method that enables antimony production at about 40% of the manufacturing cost of pyrometallurgical processes.

However, even if these technologies are ultimately listed, Korea Zinc will need to undergo an additional determination to confirm whether its technologies fall under the relevant regulations. Once designated as a National Core Technology, related institutions or companies are required by law to protect the technology. In addition, exporting the technology, or pursuing foreign investment such as overseas mergers and acquisitions or joint ventures, will require approval from the Minister of Trade, Industry and Energy.

Korea Zinc explained that, given the current management rights dispute with Young Poong and MBK Partners, the characteristics of National Core Technology designation could be used to block attempts to sell the company's technology overseas.

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