There are projections that Jang Hyeong-jin, the advisor leading Young Poong, may step down from the board of Young Poong Precision Corporation, where Choi Yoon-beom's family is the largest shareholder, after over 40 years. Jang's term will expire on the 23rd of next month. Given the escalating conflict over management rights of Korea Zinc between Choi's side and Young Poong and MBK Partners, the consensus is that the possibility of Jang's reelection to the board is low.

According to the business community on the 19th, Young Poong Precision Corporation plans to hold a board meeting to set the agenda for the regular shareholders' meeting in March between the end of this month and early next month. Attention is focused on whether the board, composed of Choi's side directors, will raise a proposal for Jang's reelection.

Jang Hyeong-jin, a consultant of Young Poong, appears at the National Assembly's Environment and Labor Committee audit on Oct. 24 last year, providing answers./Courtesy of Internet Medical Broadcasting System

There are observations in the business community that Jang's chances of remaining on the board of Young Poong Precision Corporation are low. Young Poong Precision Corporation and Jang are entangled in legal disputes, making it cumbersome for the corporation to keep Jang on the board. The corporation filed a lawsuit against Jang and five Young Poong executives for breach of trust as shareholders in September of last year when Young Poong sought to secure management rights of Korea Zinc in partnership with MBK Partners.

In December of last year, a representative shareholder damages lawsuit was filed against Jang and five Young Poong executive directors. At that time, Young Poong Precision Corporation claimed that Young Poong caused at least 930 billion won in damages to the company due to various acts of breach of trust while cooperating with MBK on the hostile takeover of Korea Zinc. Young Poong Precision Corporation holds 3.59% equity in Young Poong.

Choi Yoon-beom (second from the right), the chairman of Korea Zinc, visits the Onsan smelter in Ulsan on Jan. 31, looking around. /Courtesy of Korea Zinc

If the board of Young Poong Precision Corporation does not raise the proposal for Jang's election as a board member for the shareholders' meeting, Jang's side can demand his election through a shareholder proposal. Currently, Jang's side holds approximately 17% equity in Young Poong Precision Corporation. Even if the shareholder proposal is accepted and voted on at the shareholders' meeting, it seems likely to be rejected as Choi's family holds more than 70% equity in Young Poong Precision Corporation. There are also suggestions that the board may appoint Jang as a candidate just to avoid noise and then reject him at the shareholders' meeting.