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Photo = SM Entertainment |
[Alpha Biz= Kim Jisun] Youngpoong Group has called for a thorough investigation into Korea Zinc Chairman Choi Yoon-bum over alleged involvement in the SM Entertainment stock manipulation case, while Korea Zinc firmly denied the claims, stating it was merely a financial investment.
On September 1, Youngpoong urged prosecutors to scrutinize Chairman Choi’s role, citing Korea Zinc’s KRW 101.6 billion (approx. USD 74 million) investment in the Havana No.1 private equity fund managed by One Asia Partners—one of the entities implicated in the case. The call follows prosecutors’ request for heavy sentences against Kakao founder Kim Beom-su, Kakao’s former investment head Bae Jae-hyun, and One Asia Partners CEO Ji Chang-bae for allegedly colluding to block HYBE’s tender offer for SM Entertainment and artificially fixing its share price above the offer price of KRW 120,000.
In response, Korea Zinc issued a statement rejecting the allegations: “We wish to make it clear that Korea Zinc has never directly or indirectly engaged in any form of stock manipulation related to SM Entertainment.”
The company explained that the investment was part of routine asset management practices: “We have consistently invested in various funds based on reasonable and legitimate decision-making processes. Allocating a portion of idle funds to private equity is a common financial practice among conglomerates, conducted under proper internal procedures and approval systems.”
Korea Zinc further added that the fund investment yielded returns consistent with its role as a financial investor, emphasizing that the company remains committed to prudent and lawful capital management.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
