Shares of Korea Zinc, which decided to build a nonferrous metal smelter in the United States worth 11 trillion won, tumbled in early trading on the 16th.
As of 9:49 a.m. that day, Korea Zinc stock was trading on the main bourse at 1,407,000 won, down 11.62% (185,000 won) from the previous session.
Korea Zinc rose nearly 5% on news on the 15th that it would build a strategic minerals smelter worth 11 trillion won in the southeastern United States. But that morning it gave up those gains, sending the stock on a roller-coaster ride.
Korea Zinc held a board meeting the day before and approved an investment plan for the U.S. Smelter centered on this. Overnight, U.S. Commerce Secretary Howard Lutnick also welcomed the move on social media, calling it "a big win for the United States."
However, Young Poong and MBK Partners, which are locked in a management control dispute, said they plan to file for an injunction to ban a new share issuance, calling it a decision against the national interest that "abandons 'zinc sovereignty' to defend Chair Choi Yun-beom of Korea Zinc's personal control." The heightened uncertainty appears to be driving the sharp drop in the stock.