This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:58 p.m. on Mar. 20, 2026.
Chair Choi Yoon-beom of Korea Zinc is fast advancing on buying Bain Capital's equity. Meritz Securities, long cited in the market as a strong candidate, has submitted a letter of commitment (LOC). Meritz, together with affiliates including its nonlife insurer and capital unit, is pursuing a plan to lend 600 billion won using the Choi family's equity as collateral. Unlike typical acquisition financing, it is seen as stepping in as a "white knight" for a corporations owner and attempting a structured deal, a move viewed as different from Meritz's previous approach. (Related article☞[Exclusive] Korea Zinc Chair Choi Yoon-beom to buy back "white knight" Bain Capital's equity... seeks to raise 600 billion won)
According to the investment banking (IB) industry on the 20th, Meritz Securities has decided to lend about 600 billion won using part of the equity held by Chair Choi and other Korea Zinc Oner family members as collateral and recently submitted an LOC. Affiliates such as Meritz Fire & Marine and Meritz Capital will first underwrite and then sell down to other institutions, they said.
The equity-collateral loan led by Meritz is composed of senior and subordinated tranches, with the senior rate said to be around 6%–7% per year. Considering that the acquisition-financing rate Korea Zinc's corporation can raise in the market is in the 5% range, it is slightly higher. Given that the loan is collateralized by equity personally held by an Oner, it is not seen as excessively high.
The reason Chair Choi's side is trying to raise about 600 billion won now is to buy back Bain Capital's equity and lower the interest rate. In Oct. 2024, Bain Capital took part in the countertender offer led by Choi's side against the Young Poong–MBK Partners tender offer and secured Korea Zinc equity. At that time, Choi's side and Bain Capital jointly bought about 11.26% equity, of which Bain Capital's share was 1.41%. Bain Capital later increased its holdings through open-market purchases, bringing its shares to 419,082. Its current equity stake is about 2.01%.
The shareholders' agreement between Chair Choi and Bain Capital specifies a clause that they will not sell Korea Zinc stock "unless exceptional circumstances arise." The maturity is said to be three years.
However, Choi's side has the right to buy back Bain Capital's equity even before maturity while guaranteeing a set rate of return. They intend to exercise this right now. The rate of return that Choi's side must guarantee Bain Capital is said to exceed 15% per year. Because Bain Capital's original investment was in the mid-400 billion won range, the money needed to buy it back at this point comes to about 600 billion won.