Seoul:A court has ruled against Young Poong Corp. in a shareholder derivative lawsuit demanding 837 billion won (US$631 million) in damages from Korea Zinc Co. Chairman Choi Yun-beom and other directors.
According to Yonhap News Agency, the lawsuit was filed by Young Poong, a major shareholder in Korea Zinc, in November 2024. The suit alleged that Korea Zinc's directors caused losses of 837 billion won by making a tender offer to purchase its own shares at 890,000 won each, despite the actual share price being around 560,000 won.
The Seoul Central District Court concluded that Korea Zinc's directors did not breach their managerial duties, considering the steps they took prior to the purchase. It also determined that their actions did not contravene the Commercial Act or the company's articles of incorporation.