Yungpoong and MBK claim "legitimate shareholder activity"... Jang Se-hwan (CEO), not an official Yungpoong executive, draws attention

*This content was translated by AI.

Korea Zinc has filed a police report against MBK Partners (MBK) and Yungpoong for allegedly using the name of its U.S. integrated smelter construction project, "Project Crucible," without authorization to register a domain and hold related events. In this context, there is also controversy over what capacity MBK Vice Chairman Yoon Jong-ha and Yungpoong Moon Ko Hol-ding-seu (CEO), who are known to have led relevant operations on the ground in the United States, participated with.

According to industry sources on the 7th, Korea Zinc recently filed a complaint with Seoul Jongno Police Station against MBK's special purpose vehicle (SPC) Korea Enterprise Investment Holdings, established to secure shares in Korea Zinc, Yungpoong, Vice Chairman Yoon, Jang (CEO), and others for alleged violations of the Fair Trade Act and obstruction of business.

According to Korea Zinc, Yungpoong and MBK registered a domain named "crucibleTN.com," combining Project Crucible with Tennessee State, in June through a method that concealed the registrant's information. In July, they sent reception invitations bearing the name "Project Crucible" to Tennessee state officials, local figures, and journalists, and held an actual event on the 9th at the Hermitage Hotel in Nashville. Korea Zinc emphasized that no consultation whatsoever took place during this process.

In response, Yungpoong and MBK explained that as the "largest shareholder group" of Korea Zinc, communicating with local stakeholders regarding U.S. projects that have a significant impact on company value constitutes legitimate shareholder activity.

Through a statement, they emphasized: "Korea Zinc is a company for all shareholders," and added, "Communicating with the U.S. government, local communities, and investors about the core mineral project in the United States, which has a major impact on the company's corporate valuation, is an entirely natural activity for the largest shareholder."

However, under the Commercial Act, the authority to represent a company fundamentally rests with the board of directors. Since important business execution also falls within the scope of board decisions, there are criticisms that holding a large shareholding does not grant shareholders or related parties the right to intervene in specific company projects.

In particular, industry observers find it puzzling that the person who explained Korea Zinc's project at the reception hosted by Yungpoong and MBK was Yungpoong Moon Ko Hol-ding-seu (CEO).

Strictly speaking, Jang Se-hwan (CEO) is not an official executive of Yungpoong, which is a shareholder of Korea Zinc. Furthermore, explaining the project and linking Yungpoong's technology to it solely on the grounds of being part of the owner's family is seen as far removed from corporate governance based on professionalism and formal accountability systems.

As for Vice Chairman Yoon, while he serves as an Gi Ta-bi (SVP) director at Korea Enterprise Investment Holdings—a shareholder of Korea Zinc—the general view among legal experts is that he has no authority to intervene in Korea Zinc's management or specific projects.

Additionally, industry sources have reacted that even if Yungpoong and MBK are the largest shareholders, holding promotional events for a specific project unilaterally while excluding the actual business party, Korea Zinc, and other shareholders is not reasonable.

An industry source stated, "Most importantly, holding such an event could cause unnecessary confusion among Korea Zinc's other shareholders, investors, the U.S. government, local communities, and other stakeholders." The source added, "It may also appear as if the largest shareholder is disregarding the rights of other shareholders or the authority of the company board by emphasizing its status."

The source further noted, "While the largest shareholder can communicate with foreign governments or investors to enhance corporate valuation, in Jang Se-hwan (CEO)'s case, it is difficult to avoid criticism that they stepped forward solely because they are part of the owner's family despite not being an official executive of Yungpoong."

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*This content was translated by AI.