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Korea Zinc |
[Alpha Biz= Reporter Kim Sangjin] The Financial Supervisory Service (FSS) is initiating an investigation into potential unfair trading practices involving Korea Zinc, MBK Partners, and Youngpoong, amid an ongoing management dispute at Korea Zinc.
FSS Chairman Lee Bok-hyun stated during a weekly executive meeting on October 8 that the investigation aims to address concerns about unfair trading actions, particularly those aimed at obstructing public offers by the opposing party. He emphasized that any confirmed unfair trading activities intended to impede takeover bids would face strict legal consequences.
The FSS is particularly focused on incidents of disseminating false information that may disrupt the purchasing process of the opposing party. In a meeting held at the end of last month, Chairman Lee mentioned that if baseless rumors or misinformation lead to misjudgments or misunderstandings among investors, the FSS would take action.
Both sides involved in the dispute have submitted numerous complaints to the FSS regarding actions that could hinder the other's acquisition efforts. An FSS official commented that while there should be no issues if both parties concentrate solely on the public offer process, the ongoing allegations and accusations have increased confusion among other shareholders. The investigation will also examine whether these actions indicate stock manipulation intent.
In conjunction with the investigation, the FSS issued a consumer warning regarding the public offer associated with the Korea Zinc management dispute to protect financial consumers from potential losses following the conclusion of the dispute, which could lead to a sharp decline in stock prices.
Following the announcement of the FSS's investigation, Korea Zinc's stock price initially fell by approximately 4% to 752,000 KRW but later rebounded, closing at 776,000 KRW.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
