The Financial Supervisory Service strongly denied reports that it referred a request to investigate MBK Partners, which is in a management dispute with Korea Zinc, for using undisclosed consulting information to manipulate stock prices.
On the 9th, the Financial Supervisory Service released materials stating that 'the report claiming (MBK Partners was referred to the prosecution along with Youngpoong) is not factual.'
The previous day, a media outlet reported that 'the financial authorities discovered that MBK Partners had received undisclosed consulting information from Korea Zinc and used it for hostile mergers and acquisitions (M&A), and referred the case to the prosecution.'
It is said that MBK Partners utilized a large amount of undisclosed consulting materials to forecast corporate value after receiving related materials on Korea Zinc's new business, Troika Drive, amidst the management dispute with Korea Zinc.
In response, MBK noted, 'We have never engaged in unfair trading or utilized undisclosed consulting materials, and we have not been investigated by the financial authorities regarding this matter.' MBK criticized the report as 'a malicious slander from Korea Zinc.'
It is reported that the FSS will review an investigation into the dissemination of false information by Korea Zinc.
Previously, the FSS referred Korea Zinc's management to the prosecution on a fast track for violating capital market laws in relation to the announcement of a 2.5 trillion won capital increase on Oct. 30 last year. The FSS determined that Korea Zinc's planned capital increase before the end of its share buyback without proper disclosure constitutes false entries in the buyback report and trading violations.