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(Photo = Korea Zinc '2022 Sustainable Management Report) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] The Youngpoong Group, established as a co-founder of Korea Zinc and Youngpoong, is expected to split into two in 75 years.
According to The Korea Economic Daily and others on the 24th, Korea Zinc will establish Korea Corporation (tentative name) as a 100% subsidiary. It has also decided to eliminate human resources and information exchange programs, including joint purchase of raw materials with Seorin Corporation in Youngpoong Group. Seorin Corporation is a key affiliate of Youngpoong Group, recording sales of 1.529 trillion won last year alone.
Korea Zinc explained that the reason for the breakup with Youngpoong was because of 'excessive management interference'.
In addition, Korea Zinc also claimed that it has been treated unfairly in Youngpoong Group. Korea Zinc's position is that Youngpoong Group has been distributing nonferrous metals made by Korea Zinc and Youngpoong through Seorin Corporation, and in the process, it only drove high-margin contracts to Youngpoong.
Youngpoong also seems to be strongly opposed to Korea Zinc's attempt to separate management, with the logic that it is natural for the largest shareholder to be involved in the company's management. Since Youngpoong is the largest shareholder with a 32% stake in Korea Zinc, there is no problem in intervening in the management front.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
