Korea Zinc's retired executives group, known as the Kosuhoe, expressed support for the current management.
On the 6th, the Kosuhoe issued a statement saying, "As members who helped grow Korea Zinc into the world's leading non-ferrous metal corporation, we actively support the current management for the company's leap into a new future." The Kosuhoe also noted, "We can no longer stand by and watch MBK Partners' black ambitions to swallow Korea Zinc, with its ties to the already failed smelting company Young Poong."
The Kosuhoe directed a statement at MBK Partners, saying, "We hope that you will focus on the recovery of the competitiveness of numerous acquisition corporations suffering from management failures, including Homeplus, which recently entered corporate rehabilitation, and on comforting the injured employees." They added, "We wish for our society to return to expecting the role of corporations as partners of private equity funds." Homeplus, the second-largest large mart in the country owned by MBK Partners, entered corporate rehabilitation on the 4th due to financial difficulties. MBK Partners purchased Homeplus in 2015 for 7.2 trillion won, the largest amount in the history of domestic mergers and acquisitions (M&A).
The Kosuhoe stated, "Observing the moral hazard displayed in the recent Homeplus situation and the tendency to shift the burdens onto workers, partners, consumers, and creditors has strengthened our conviction that we must prevent this and protect Korea Zinc."
The Kosuhoe urged Young Poong, saying, "We urge you to adopt an approach focused on improving your deteriorating main business, grounded in basic principles and common sense."
In response to the Kosuhoe's statement, Young Poong rebuffed it, calling it "a biased claim that distorts the facts and denies the legitimate rights and roles of the largest shareholder, Young Poong."
Young Poong released a separate statement saying, "As the largest shareholder, Young Poong is promoting the normalization of management at Korea Zinc, which is a legitimate measure to correct Chairman Choi Yoon-bum's arbitrary and inefficient management exercise of control." They stated not to distort the legitimate exercise of shareholder rights as a hostile M&A.
Young Poong noted, "The way for retired executives to truly support Korea Zinc is not to endorse the unreasonable defense of individual management rights, but to help Korea Zinc establish a normal governance structure and sustain continuous growth." Young Poong further emphasized that "as the largest shareholder, we will do our utmost to enable Korea Zinc to establish a more transparent and fair management system."