This article was displayed on the MoneyMove (MM) site by ChosunBiz at 11:22 a.m. on Mar. 12, 2026.
Chair Choi Yoon-bum of Korea Zinc is pushing a plan to buy back the equity held by global private equity firm Bain Capital, which came in as a white knight during the management control dispute. The return guaranteed to Bain Capital is said to be around 15% annually, and it is understood that funds in the 600 billion won range needed for repayment are being raised to reduce interest burdens.
According to the investment banking (IB) industry and the business community on the 12th, Choi's side recently proposed that a certain securities firm provide financing, such as through loans, to buy back the 2%-range equity held by Bain Capital. The securities firm suggested a co-investment to capital companies, and those financial companies are reviewing whether to provide funds.
In Oct. 2024, Bain Capital participated in Choi's counter-tender offer against Young Poong–MBK Partners' tender offer and secured Korea Zinc equity. At that time, Choi's side and Bain Capital jointly purchased about 11.26% equity, of which Bain Capital's share was 1.41%.
Since then, Bain Capital additionally secured shares through open-market purchase, increasing its holdings to 419,082 shares, and its current equity stake is around 2.01%.
The shareholders' agreement between Choi and Bain Capital includes a clause stating, "Barring exceptional circumstances, Korea Zinc shares will not be sold." The maturity is known to be three years.
However, Choi's side has the right to buy back Bain Capital's equity before maturity while guaranteeing a set return, and the return to be guaranteed in that case is said to far exceed 15%. Considering that Bain Capital's investment principal was in the mid-400 billion won range, the money needed to buy it back at this point is estimated to be in the 600 billion won range.
Choi's side is said to have judged that early repayment to Bain Capital with funds raised from other financial companies could lower interest expense. However, with Korea Zinc's regular shareholders meeting imminent, actual funding and full-scale repayment discussions are expected to take place only after the meeting.