Yoon-bum Choi, chairman of Korea Zinc, is reported to have sold some equity in the company, which was regarded as a friendly force by the foreign company Trafigura. Korea Zinc clarified that Trafigura did not sell equity but that there was a change in equity ratio during the process of lending.
According to the financial investment industry on the 18th, the global commodity brokerage firm Trafigura reportedly arranged some of its equity through a public purchase of Korea Zinc last October.
Trafigura's equity in Korea Zinc, which had been 1.49% (307,678 shares) before the public purchase, was found to have decreased to about 230,000 shares after the purchase, dropping to around 1.1%. Some speculate that Trafigura gained a market profit exceeding 200,000 won per share from its recent divestment. The amount is estimated to be between 15 billion and 20 billion won.
However, Korea Zinc stated that the change in equity ratio was only due to Trafigura lending equity.
Trafigura is a multinational corporation headquartered in Singapore and is the world's largest commodity brokerage firm. It has maintained a long-term cooperative relationship with Korea Zinc in areas such as raw material procurement. The market classifies Trafigura as a friendly equity entity of Chairman Choi. In 2022, Trafigura participated as a strategic investor in Korea Zinc by purchasing its own shares for 200 billion won.
Meanwhile, around the same time, other entities known as 'white knights' for Chairman Choi, such as Korea Investment & Securities and Hankook Tire & Technology, sold all the shares they held in Korea Zinc. Korea Investment & Securities and Hankook Tire held equity in Korea Zinc equivalent to 0.8% and 0.7%, respectively.
Jo Yang-rae, honorary chairman of Hankook & Company Group, BRV Capital, and Koo Yeon-kyung, CEO of LG Welfare Foundation, also sold all their shares in Korea Zinc.
As a result, the market estimates that even when combining all friendly forces, Chairman Choi's equity will only be around 34%. The Youngpoong and MBK Partners alliance is reported to be close to 40%. Both sides are expected to engage in a vote on key issues that will influence the company's management rights, such as the replacement of board members, at the Korea Zinc shareholders' meeting early next year.