*This content was translated by AI.
Jang Se-hwan, executive vice president of Younghung E&I but not an official officer of Younghung Co., appeared at a U.S. event under the title "executive vice president of Younghung Group," introducing Seokpo Smelter as a "world-class eco-friendly smelter" and outlining plans to share Younghung's technology and operational know-how with the U.S. integrated smelter.
However, concerns have been raised regarding Jang's role and whether his remarks carried official or representative authority on behalf of the company.
Younghung and MBK Partners recently hosted a support reception for "Project Crucible," the U.S. integrated smelter construction project by Korea Zinc, in Nashville, Tennessee.
According to reports, a promotional video shown at the event highlighted that Younghung's competitive edge in the global zinc smelting industry stems from its commitment to innovative and environmentally friendly technologies.
Jang stated, "Today, Seokpo Smelter has transformed into a symbol of Younghung's dedication to environmental management and cooperation with local communities," adding, "Since 2019, Younghung has implemented various environmental improvement projects and made large-scale investments, resulting in Seokpo Smelter becoming a world-class eco-friendly smelter."
However, in South Korea, accounting practices related to Seokpo Smelter's environmental remediation obligations became subject to severe sanctions by financial authorities. The Financial Services Commission imposed a fine of 204.741 billion won on Younghung for preparing and disclosing financial statements in violation of accounting standards, while the Securities and Futures Commission previously decided on measures including recommending the appointment of an auditor and the dismissal of the then CEO.
Jang further stated that "wastewater is purified and reused, so not a single drop is discharged externally." It was also reported that he claimed the facility has operated without incidents since 2021 and has become a model case referenced by multiple companies.
However, Seokpo Smelter had previously been ordered to suspend operations by Gyeongsangbuk-do Province after unauthorized discharge of wastewater containing heavy metals and illegal pipeline installations were discovered. Younghung filed a lawsuit to revoke the suspension order, but the Supreme Court upheld the suspension in October 2024, leading to a 58-day operational halt from February 26 to April 24, 2025. Consequently, questions have been raised about whether Jang's statement that "operations have proceeded without a single incident since 2021" refers specifically to the ZLD (Zero Liquid Discharge) system or to the entire smelter operation.
Jang also described the groundwater diversion facility as "a fortress-like defense structure preventing contaminated water from flowing into groundwater," explaining that endangered species such as otters and serows have been spotted in the vicinity.
In contrast, People Power Party lawmaker Kim Hyung-dong pointed out during last year's national audit that Seokpo Smelter has committed 103 violations of environmental laws between 2014 and 2025. A Younghung shareholder also previously argued in a shareholder proposal that there were 76 violations of environmental regulations up to 2022.
Younghung maintains that it has continuously invested in improving the environmental conditions at Seokpo Smelter and has been advancing the modernization of environmental facilities, including the establishment of a zero-discharge system.
At the U.S. event, Jang reportedly stated, "Younghung possesses world-class eco-friendly technologies capable of fundamentally blocking the leakage of harmful substances both inside and outside the smelter," adding, "We will cooperate to ensure Clarksville Zinc Smelter achieves sustainable development by sharing eco-friendly technologies, including the zero-discharge system, along with operational know-how." It was also reported that he claimed Younghung's accumulated eco-friendly technology and experience would play a crucial role in Tennessee's sustainable economic growth.
However, Korea Zinc stated that it had no prior consultations with Younghung or MBK regarding the reception or presentation content, and emphasized that Seokpo Smelter's environmental facilities are separate from the Project Crucible process.
Jang reportedly introduced Project Crucible at the event as a project with an annual production capacity of 300,000 tons of zinc and 200,000 tons of lead. However, Project Crucible is an integrated smelter project that produces not only zinc and lead but also various non-ferrous metals and critical minerals such as copper, gold, silver, antimony, indium, bismuth, germanium, and gallium.
Jang holds no official position at Korea Zinc or Project Crucible and is not an official officer of Younghung Co. In this context, his remarks about sharing Younghung's technology and operational know-how with the U.S. smelter raise questions about whether they reflect the company's official stance or were made based on any specific authority or procedure, prompting calls for further explanation from Younghung.
Ultimately, it has been pointed out that the core issue surrounding this U.S. reception extends beyond merely the use of the title "executive vice president of Younghung Group."
Given the financial authorities' sanctions and the history of environmental law violations, further explanation from Younghung is needed regarding the basis for evaluating Seokpo Smelter as a "world-class eco-friendly smelter."
Additionally, since Korea Zinc has stated that no prior consultations took place, more detailed clarification from Younghung is required regarding the background and official nature of Jang's remarks—made by someone who is not an official officer of Younghung Co.—about sharing its technology and operational know-how with the U.S. project.
<© STARNEWS. All rights reserved. No reproduction or redistribution allowed.>
*This content was translated by AI.
