Youngpoong and MBK Partners face controversy over independent U.S. smelter promotion

Youngpoong and MBK Partners are facing controversy for conducting independent promotional activities in the United States regarding ‘Project Crucible’, Korea Zinc’s integrated smelter construction project in Tennessee.

Reports indicate that following a reception in Tennessee, the Youngpoong-MBK group sent follow-up communications to attendees suggesting that the environmental management systems, operational frameworks, and personnel from Youngpoong’s Seokpo Smelter could be utilized for the U.S. project. They also proposed site visits to the Seokpo facility for American officials.

Korea Zinc has stated it had no prior consultation with the group regarding these proposals. The company clarified that Project Crucible is designed based on the integrated processes of its Onsan Smelter to produce 12 types of metals, including precious and strategic minerals, which differs significantly from the zinc-focused operations at the Seokpo Smelter.

In response to these activities, Korea Zinc has filed police complaints against key figures from the Youngpoong-MBK group, alleging violations of the Unfair Competition Prevention Act and business obstruction. The group maintains that its actions are legitimate shareholder activities intended to support the project.