Seoul:A Seoul court has ruled against Young Poong Corp. in its shareholder derivative lawsuit against Korea Zinc Co., which sought 837 billion won (approximately US$631 million) in damages. The lawsuit targeted Korea Zinc Chairman Choi Yun-beom and other company directors over a tender offer involving the purchase of the company's own shares.
According to Yonhap News Agency, Young Poong, a significant shareholder in Korea Zinc, filed the lawsuit in November 2024. The company claimed that Korea Zinc's directors caused substantial financial losses by purchasing shares at 890,000 won each, while the actual price was around 560,000 won.
The Seoul Central District Court determined that Korea Zinc's directors did not breach their managerial duties, pointing to the steps they took prior to the share purchase. The court also found that the action did not contravene the Commercial Act or the company's articles of incorporation.
Young Poong, along with its private equity partner MBK Partners Ltd., announced plans to appeal the ruling. They argued that the court's decision failed to address the harm done to Korea Zinc's financial stability and shareholder value by the share buyback, which they claim was aimed at maintaining Choi's position.
This legal battle is part of a broader conflict that saw Young Poong and MBK Partners attempt to take control of Korea Zinc, the world's largest refined zinc smelter, in a confrontation that concluded in March 2025. During this period, both sides issued competing tender offers to acquire additional shares. Young Poong currently holds a 34 percent stake in Korea Zinc, with Choi and related parties holding 17 percent, MBK with 9 percent, and Hanwha Group also with 9 percent.