[Alpha Biz= Reporter Kim Jisun] As Korea Zinc ceased handling sulfuric acid for Young Poong amidst a management dispute, Young Poong has initiated legal action. Korea Zinc stated that the decision was made to strengthen their environmental, social, and governance (ESG) practices, and claimed that there were unreasonable demands from Young Poong during the negotiation process.
Young Poong announced on the 3rd that it filed a lawsuit against Korea Zinc on June 20th to prevent unfair trade practices, and subsequently filed an injunction on July 2nd to prohibit the refusal of transactions. Young Poong's legal actions follow Korea Zinc's decision not to renew the sulfuric acid handling contract that expired on June 30th. Zinc smelting companies, including Korea Zinc and Young Poong, produce sulfuric acid as a byproduct of the zinc smelting process, with a significant portion being exported overseas. Young Poong had been exporting sulfuric acid through Ulsan Onsan Port with Korea Zinc handling it. However, with Korea Zinc refusing to renew the contract, Young Poong has claimed "unfair trade practices" and taken legal action.
Young Poong argues that since there is minimal domestic demand for sulfuric acid, most of the sulfuric acid produced during the zinc smelting process must be exported. Given that Onsan Port is practically the only port capable of handling sulfuric acid, Korea Zinc's refusal to handle it constitutes an unfair practice.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
