[Alpha Biz= Paul Lee] Seoul, May 30 – Private equity firm MBK Partners and metals conglomerate Young Poong have jointly filed a formal lawsuit against Korea Zinc, seeking to nullify resolutions passed at the company’s March annual general meeting (AGM). The lawsuit was filed on May 27 with the Seoul Central District Court, according to a regulatory filing made by Korea Zinc on Thursday.
The plaintiffs argue that amendments made to the company’s articles of incorporation—notably, the imposition of a maximum cap of 19 board directors—and the subsequent director appointments were unfairly structured to prevent MBK and Young Poong from securing a majority presence on the board, despite being among the company’s largest shareholders.
The complaint follows a series of escalating legal and corporate governance battles between Korea Zinc and the MBK–Young Poong alliance. The dispute intensified earlier this year when Korea Zinc restricted Young Poong’s voting rights by having a subsidiary (SMC) acquire shares in Young Poong, creating a cross-holding structure. Although the court later ruled this move improper, Korea Zinc responded by shifting the shareholding to SMH, an Australian affiliate, which still effectively invalidated Young Poong’s voting rights under Korean corporate law due to the cross-shareholding.
This maneuver enabled Korea Zinc to limit Young Poong’s 25.4% stake from influencing key decisions, including board appointments, helping it secure board control during the AGM.
In parallel to the full lawsuit, MBK and Young Poong have also filed an interlocutory appeal in the Seoul High Court to reverse the court’s earlier decision that denied their request to restore voting rights—a move signaling a broader legal offensive aimed at regaining governance influence at Korea Zinc.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
