Korea Zinc faces legal battle with MBK and Young Poong over management control

Korea Zinc is engaged in a heated dispute with MBK Partners and Young Poong ahead of its extraordinary general meeting scheduled for September 9. The conflict centers on explanatory materials used to influence shareholder decisions regarding the appointment of independent directors and audit committee members.

MBK Partners and Young Poong have demanded the removal of certain content from Korea Zinc’s shareholder materials, alleging that the company is using distorted facts and irrelevant past management cases—such as those involving Homeplus and the Seokpo Smelter—to create negative public opinion. Korea Zinc has countered by threatening civil and criminal legal action, accusing the opposing parties of misusing unconfirmed litigation records and attempting to mislead the market to facilitate a hostile takeover.

In a significant development for the proxy battle, global proxy advisory firm Glass Lewis has recommended that shareholders vote in favor of Baek In-kyu, the candidate proposed by the Korea Zinc board for the audit committee. Glass Lewis cited Baek’s extensive expertise in accounting and internal controls. Other major advisory firms, including ISS, PIRC, and Sustainvest, have also issued similar recommendations, supporting the current management's candidates over those proposed by MBK and Young Poong.