Yeongpung and MBK Partners dismissed the possibility of a merger review by the Fair Trade Commission regarding the additional acquisition of equity in Korea Zinc.

On the 16th, Yeongpung and MBK stated in a statement, 'Korea Zinc is designated as a subsidiary of the Yeongpung business group by the Fair Trade Commission,' and added, 'the general view in the legal community is that it cannot be subject to a new merger review.'

From the left: Jang Hyoung-jin, advisor at Youngpoong, Kim Byeong-joo, chairman of MBK Partners, Choi Yoon-beom, chairman of Korea Zinc. /Courtesy of News1

Recently, there have been claims that Yeongpung and MBK could face a review from the Fair Trade Commission following the acquisition of management rights in Korea Zinc. This is because changes in control could constitute a 'corporate merger.'

Yeongpung and MBK noted, 'Yeongpung is the largest shareholder with over 15% equity in Korea Zinc, possessing a unified control,' and stated, 'the acquisition of additional equity through a public offering cannot be considered a subject for merger notification.'

They added that 'the directors' terms, including Chairman Cho Yun-beom, are only two years,' and mentioned that 'all these individuals were appointed as directors with the support of Yeongpung, the largest shareholder, at the annual general meeting.'

Yeongpung and MBK said, 'Korea Zinc is wrongly interpreting the strengthening of the largest shareholder's control and changes in management rights as corporate acquisitions, linking them to the merger review,' noting that 'to deny the influence of Yeongpung and MBK is a view that deviates from a common understanding of the corporate system.'

Yeongpung and MBK claimed that concerns regarding an 'zinc monopoly' if they secure management rights in Korea Zinc are merely unfounded speculations with unclear basis and logic.

Yeongpung and MBK emphasized, 'Although Korea Zinc acquired management rights in KZ Trading (formerly Seorin Trading), it remains a subsidiary of the Yeongpung business group,' adding that 'since Yeongpung and Korea Zinc have jointly sold products in domestic and international markets for over 30 years through KZ Trading and others, a monopoly phenomenon cannot suddenly arise.'

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