*This content was translated by AI.
MBK Partners (MBK) and Youngpoong are drawing attention to the background as they “object” to the agenda materials released by Gooryeong Zinc ahead of its extraordinary general meeting scheduled for September 9. MBK and Youngpoong have demanded the deletion of certain contents from the explanatory materials on the agenda for the extraordinary general meeting released by Gooryeong Zinc (agenda construction name materials) and even hinted at legal action. In response, Gooryeong Zinc countered that the content of the materials is closely related to management capabilities and governance, and if there are problematic contents, they should be disclosed specifically.
According to the financial investment industry on the 27th, MBK demanded the deletion of certain parts of the explanatory materials on the agenda for the extraordinary general meeting released by Gooryeong Zinc on the 20th, stating that some content was false or distorted. The company also sent a formal letter requesting the deletion of related content regarding MBK’s portfolio companies and warned of legal measures such as criminal prosecution. Youngpoong likewise announced its stance on civil and criminal countermeasures on the 21st.
The controversial explanatory materials included cases related to management and governance of MBK’s portfolio companies and Youngpoong’s Seokpo Smelter.
In the materials, Gooryeong Zinc evaluated that Homeplus focused on asset sales and short-term fundraising for repayment of acquisition financing rather than business normalization despite deteriorating performance, raising concerns that financial soundness and corporate valuation would be undermined. It also mentioned regulatory procedures by financial authorities related to the Homeplus incident and investigations by the Prosecution Service.
It also cited internal control issues at a major domestic credit card company as an example. The company explained that concerns were raised regarding the controlling shareholder’s management and supervision capabilities, citing cases where two employees conspired with a vendor to sign defective contracts and disbursed 10.5 billion won of company funds, as well as a data breach involving the personal information of 2.97 million people.
In addition, the materials included cases such as a medical device company that underwent large-scale workforce and organizational restructuring during a period of deteriorating profitability, an insurance company that promised long-term investment but sold off after five years, and a cable TV company whose financial stability worsened after raising acquisition costs through debt.
Regarding Youngpoong, the materials included the history of work stoppages due to violations of environmental laws at Seokpo Smelter and cases of violations of the Major Accident Punishment Act. It presented repeated violations of environmental laws leading to ongoing risks of work stoppages, as well as cases where Jeon (CEO) and the smelter manager were arrested and prosecuted for violating the Major Accident Punishment Act, linking them to management and operational capabilities.
In response, MBK and Youngpoong are objecting, claiming that Gooryeong Zinc selectively presented certain factual relationships in an effort to create public opinion unfavorable to them ahead of the extraordinary general meeting. In particular, they maintain that much of this content has no direct relevance to the agenda items for this extraordinary general meeting.
In contrast, Gooryeong Zinc refuted this, stating that the explanatory materials were prepared based on publicly available data from financial authorities and institutional investors, public disclosures, and media reports.
Gooryeong Zinc explained, “This is to provide shareholders with disclosed facts and the market’s evaluation of them,” adding, “We did not fabricate new facts without basis or present them as established facts.”
Regarding the content related to Youngpoong, Gooryeong Zinc maintains that it was prepared based on publicly verifiable materials, including controversies over environmental pollution at Seokpo Smelter, sanctions by relevant institutional investors, and measures for violations of accounting standards.
The dispute between the two sides is expected to continue over whether the cases included in the explanatory materials can serve as grounds for shareholders’ judgments at the extraordinary general meeting. Gooryeong Zinc plans to appoint outside directors who will become independent directors and audit committee members at next month’s extraordinary general meeting on the 9th.
An industry official stated, “Cases such as Homeplus, credit card companies, medical device firms, and Seokpo Smelter can serve as reference materials for examining MBK and Youngpoong’s past management and governance capabilities,” adding, “It is naturally within the rights of shareholders to compare Gooryeong Zinc’s current management team’s performance with MBK and Youngpoong’s past management and operational records when deciding whether to exercise their voting rights.”
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*This content was translated by AI.
