Korea Zinc’s Core Technical Team Reiterates its Support for the Current Leadership Ahead of the EGM

The core technical team of Korea Zinc (KRX:010130), including CTO and Vice Chairman Lee Je-joong, has reaffirmed its support for the current management ahead of the upcoming extraordinary general meeting (EGM) scheduled for the 23rd.

They emphasized that Korea Zinc’s continuous growth and development over the past 50 years is the result of collective effort as one united team. They reiterated their commitment to moving forward as “one team” with the current management, led by Chairman Yun B. Choi, to ensure the company’s future growth while enhancing shareholder value.

In a statement released on the 15th, the core technical team stated, “If speculative private equity fund MBK and Young Poong, a company plagued by severe environmental pollution issues and deficits, take control of Korea Zinc’s board, the company will have no future.”

They expressed concerns that if the hostile takeover by the consortium – who lacks understanding of Korea Zinc’s world-leading non-ferrous metal smelting technologies and its growth strategy spearheaded through the Troika Drive initiative – succeeds, then it would significantly damage both the company and shareholders’ interests.

The core technical team stated, “We strongly oppose the hostile M&A attempt by MBK and Young Poong,” adding, “If their attempt succeeds, we will not work with MBK or Young Poong.”

In September last year, shortly after MBK and Young Poong announced their surprise hostile takeover, Korea Zinc’s core technical team held a press conference and stated, “The key technical personnel and all employees of Korea Zinc stand united with the current management,” warning that, “If speculative funds like MBK Partners were to take control of Korea Zinc, key technologies will be siphoned off in no time, undermining the competitiveness of Korea.”

Through the statement, they criticized MBK and Young Poong for their ignorance, incompetence and arrogance regarding Korea Zinc’s business, technology and growth drivers, as seen through various press conferences and interviews they have given over the past few months.

They also emphasized that MBK and Young Poong’s continuous criticism of Korea Zinc’s Troika Drive, which includes renewable energy and green hydrogen, secondary battery materials and resource recycling businesses, as well as their negative stance on active investments in new business growth, clearly shows that they lack any vision or plan for Korea Zinc’s future growth.

Vice Chairman Lee stated, "MBK and Young Poong are solely fixated on taking over Korea Zinc, which has achieved solid and stable growth. If their hostile M&A were to succeed, it is certain that all of Korea Zinc's ambitious new business initiatives would collapse, resulting in a tremendous national loss."

In particular, Vice Chairman Lee criticized MBK’s attempts to lure in current employees of Korea Zinc by claiming they will be provided with world-class treatment, stating, “We have no intention of working with an incompetent management team.” He said, “This is a typical speculative private equity mindset that only pursues short-term profit maximization, rooted in the vulgar notion that money alone will suffice, which is deeply insulting.” He added, “They lack any understanding of Korea Zinc’s role as a pillar of the nation’s key industries and are unqualified to discuss its management.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20250116281082/en/