Concerns are rising in the U.S. political arena regarding the hostile takeover attempt by the private equity firm MBK Partners of Korea Zinc. Politicians have pointed out the links between MBK Partners and Chinese capital, raising fears that China could exert influence over the critical mineral supply chains of the United States and its allies.
According to business sectors on the 17th, Vin Weber, who served as a Republican congressman from 1981 to 1993, expressed deep concerns in a letter sent to the U.S. Department of State on the 14th about the potential acquisition of controlling stakes in Korea Zinc by MBK Partners. Former Congressman Weber noted that, considering MBK Partners' investment history, there are valid reasons to expect that entities based in China or funded by China will participate in several transactions.
Weber stated, "In this case, not only could extensive technology transfers occur with Chinese entities, but the dismantling of a significant global player (referring to Korea Zinc) could unfold in the joint efforts of the U.S. and South Korea to protect and expand the critical mineral supply chains from China."
Weber urged the U.S. Department of State to ensure that this transaction continues to be reviewed in a manner that considers various factors, including national security interests and economic impacts, in consultation with the Ministry of Trade, Industry and Energy and the Ministry of Foreign Affairs of South Korea. He also stated, "Under the current management, Korea Zinc is an irreplaceable player in our joint efforts to ensure that supply chains are adequately protected from China's economic coercion and manipulation."
Previously, Robert O'Brien, who served as the National Security Advisor during Donald Trump's first term, expressed concerns on the 16th on X (formerly Twitter) about the possibility of Korea Zinc, a key ally of the United States, being acquired by MBK Partners, which is linked to the Chinese Communist Party, thereby undermining efforts to reduce Chinese control over critical mineral supply chains. O'Brien stated, "MBK Partners has corporations in its portfolio and is a private equity firm with sovereign wealth funds as partners based in Beijing. If Korea Zinc comes under the influence and control of the Chinese Communist Party, it could be detrimental to the economic and national security of the U.S. and South Korea."
U.S. Congressman Eric Swalwell also sent a letter last month to Vice Minister Jose Fernandez at the U.S. Department of State expressing concerns about MBK Partners' attempt to acquire Korea Zinc.