Young Poong, MBK support Korea Zinc's US project but reject financing method

The Young Poong–MBK Partners alliance said Tuesday that it is not opposed to Korea Zinc’s plan to build a large-scale smelter in the United States. It added, however, that the project should be pursued through a more transparent method, such as a rights offering to existing shareholders, rather than a third-party allotment. The alliance made the remarks after filing an injunction with the Seoul Central District Court to block the issuance of new shares under a third-party allotment. The allotment had been approved by Korea Zinc’s board the previous day to finance construction of the U.S. smelter, a project worth 11 trillion won ($7.5 billion). “Our action does not target the U.S. smelter project itself,” the alliance said in a statement. “The injunction is necessary because the new share issuance was structured to preserve Korea Zinc Chairman Choi Yun-beom’s control amid an ongoing management dispute, an act strictly prohibited under the Commercial Act and consistently rejected by Supreme Court precedents.” In a separate statement, Young Poong also stressed that it doesWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times