[Alpha Biz= Reporter Kim Sangjin] On the 8th, according to industry sources, Young Poong has initiated legal action against Korea Zinc, alleging that Korea Zinc's unilateral termination notice of the sulfuric acid handling agency agreement is unfair.
Korea Zinc has cited the need for facility aging and other reasons for discussing a 3-month grace period, but Young Poong claims they unilaterally demanded a grace period of over 7 years.
Young Poong stated, "It took nearly 10 years to establish sulfuric acid facilities near Donghae Port and to actually operate them. Based on this past experience, we know it takes quite a long time to build actual sulfuric acid facilities, hence the request for a 7-year period," emphasizing, "This is not a problem that can be resolved in just 3 months."
The two parties have not been able to reconcile their differences so far. Last month, Young Poong filed a lawsuit against Korea Zinc in the Seoul Central District Court regarding the refusal to renew the sulfuric acid handling agency contract, followed by an injunction to prohibit refusal of transactions on the 2nd of this month. Concerns have been raised that such disputes could impact the domestic and international zinc markets.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
