Young Poong stressed that its March transfer of a 25.42% equity stake in Korea Zinc to its subsidiary YPC through a contribution in kind was a "proper and lawful asset structure reorganization as the largest shareholder."
On the 27th, Young Poong said in a statement, "It is only a change to holding the equity that Young Poong directly held through a subsidiary, and there is no change in the substantive control structure," adding, "There is no issue at all under the Fair Trade Act."
In addition, Young Poong pushed back against Korea Zinc's recent filing with the Fair Trade Commission accusing Young Poong and YPC of violating the Monopoly Regulation and Fair Trade Act, calling it "a self-contradictory claim that distorts the essence."
Korea Zinc submitted a report to the Fair Trade Commission, saying Young Poong created a new circular shareholding loop through a domestic affiliate (YPC). Earlier, in February, Young Poong and MBK Partners also filed a report with the Fair Trade Commission, saying Korea Zinc created a new circular shareholding structure by using an overseas affiliate.
Young Poong said, "Ahead of the Korea Zinc extraordinary shareholders meeting in January this year, the side of Chair Choi had Korea Zinc's Australian affiliate SMC acquire 10.33% (worth 57.5 billion won) of Young Poong equity held by the Choi family," adding, "This created a circular shareholding loop of 'Korea Zinc → SMC → Young Poong → Korea Zinc.'"
Young Poong criticized, "This structure violates the principle restricting cross-shareholding prohibited by the Fair Trade Act," adding, "For the Korea Zinc side, which created a circular shareholding structure on its own, to take issue with Young Poong's asset reorganization is nothing but turning the tables."