This article was displayed on the ChosunBiz MoneyMove (MM) site at 2:16 p.m. on Apr. 23, 2026.
Regarding Korea Zinc's recent misreporting of the lender while borrowing 540 billion won from Meritz Financial, the Financial Supervisory Service has begun looking into the background. It is said to be examining whether there was any intent in the process.
According to the investment banking (IB) industry on the 23rd, the Corporate Disclosure Department of the Financial Supervisory Service (FSS) has begun to ascertain the facts and circumstances related to Korea Zinc's corrected disclosure of the lender. An FSS official said, "We will check the circumstances and then take necessary measures."
According to the industry, the Financial Supervisory Service (FSS) is said to be investigating whether there was intent in the process by which Korea Zinc omitted the actual pledgee and listed Meritz Securities as the lender.
On the 14th, through a "report on large-scale holdings of stocks, etc.," Korea Zinc disclosed that the special purpose company (SPC) "P23 Partners" of Meritz Securities borrowed 541.1 billion won from Meritz Securities. It also said Chair Choi Yun-beom and related parties provided 621,463 Korea Zinc shares to Meritz Securities as collateral.
In response, Young Poong on the 20th said, "It is problematic that Meritz Securities, a comprehensive investment firm, extended credit to individual shareholders." Since financial authorities have regulated credit extension by comprehensive investment firms to individuals, the intent is to review whether this case complies with relevant laws and supervisory standards.
Korea Zinc issued a corrected disclosure on the 21st. Meritz Securities was changed from "lender" to "arranging financial institution," and the pledgees were corrected from Meritz Securities to "Meritz Capital, Meritz Fire & Marine Insurance, JB Woori Capital, Kwangju Bank, Jeonbuk Bank."
The Corporate Disclosure Department of the Financial Supervisory Service (FSS) is said to have launched an investigation into whether Korea Zinc's misstatement of the lender was intentional and whether sanctions are needed for a disclosure violation. Under the Financial Investment Services and Capital Markets Act, false entries or omissions of material items in a report on large holdings of stocks are subject to a penalty surcharge. Beyond that, administrative action is also possible. The industry believes whether this is a simple clerical error or a case where the actual lender and pledgee were known but intentionally written differently will determine whether sanctions are imposed.