Korea Zinc has filed a complaint with the Financial Supervisory Service, suspecting that MBK Partners violated a non-disclosure agreement by using materials received for reviewing new investments targeting the company in an attempt to seize management control of the company.

Korea Zinc stated on the 15th, "We submitted a complaint to the FSS regarding the allegations of MBK Partners' breach of the non-disclosure agreement (NDA) and noted that an investigation and inspection are necessary."

Choi Yun-beom, Chairman of Korea Zinc, is wetting his throat while speaking at a press conference on the management rights dispute with Youngpoong and MBK, held at the Grand Hyatt in Yongsan, Seoul on Nov. 2./Courtesy of News1

Korea Zinc claimed, "It is suspected that MBK has received 112 pages of undisclosed consulting materials predicting the Troika Drive strategy and corporate value from Korea Zinc in the past and has utilized this information for hostile transactions, undermining market stability and transaction order. A comprehensive investigation and inspection regarding violations of the Capital Market Act are needed."

MBK Partners reviewed new investments in Korea Zinc two years ago. At that time, they received and examined materials related to the Troika Drive from Korea Zinc, but ultimately no investment was made. The non-disclosure agreement (NDA) between MBK and Korea Zinc expired last May. Korea Zinc recently expressed suspicion that MBK Partners attempted aggressive mergers and acquisitions targeting the company using internal materials received for investment review at that time.

Meanwhile, MBK Partners has drawn a line against the allegations from Korea Zinc, stating that the 'special situations' sector, which reviewed investments in Korea Zinc, and the 'buyout' sector, which is currently attempting to acquire management rights in Korea Zinc, operate with a barrier to information exchange.