Korea Zinc said on the 9th that ahead of its annual general meeting, it filed a complaint with the Seoul Jongno Police Station against the Young Poong and MBK Partners side (Young Poong side) for alleged violations of the Financial Investment Services and Capital Markets Act and obstruction of business. The Young Poong side denied Korea Zinc's claim, saying it is conducting proxy solicitation activities in strict compliance with relevant laws and regulations.
Korea Zinc claimed that some employees of the Young Poong and MBK side's proxy solicitation firm impersonated Korea Zinc or deceived shareholders to collect their proxy forms.
Korea Zinc said, based on reports from shareholders, that the accused wore Korea Zinc employee ID cards around their necks and contacted shareholders in a manner that could lead to confusion that they were Korea Zinc employees. For shareholders who could not be reached, they posted notices in front of their homes bearing only the company name "Korea Zinc Co., Ltd.," and it was confirmed that only after shareholders repeatedly asked for their affiliation did they reveal they were employees of a firm collecting proxy authorizations for the Young Poong side.
Korea Zinc views this as a clear case of obstruction of business. Under Article 314, Paragraph 1 of the Criminal Act, the offense of obstruction of business is established when business is obstructed by deception or force.
Korea Zinc also said this constitutes a serious crime that disrupts order in the capital market and illegally obtains shareholders' personal information. Article 154 of the Financial Investment Services and Capital Markets Act provides that, in relation to general meetings of listed companies, when soliciting the exercise of voting rights by proxy, the key matters related to proxy voting must be clearly stated or indicated.
A Korea Zinc official said, "The complaint also states that if the employee ID cards worn by the accused are found to be similar to actual Korea Zinc employee IDs, this could constitute private document forgery and the use of forged private documents."
The Young Poong side, meanwhile, categorically denies Korea Zinc's allegations. It said it is carrying out proxy solicitation activities in strict compliance with relevant laws, including the Financial Investment Services and Capital Markets Act and those governing private document forgery. It added that all activities are conducted with legal counsel and internal controls, making impersonation impossible.
As supporting material, the Young Poong side presented the business cards used by its agents. It emphasized that to prevent confusion among principals, the Young Poong side's proxy agents clearly state on their business cards that they are "MBK·Young Poong Joint Agents."
A Young Poong official said, "Baseless allegations and criminal complaints are pressure tactics intended to stifle legitimate proxy voting activities and hinder shareholders' free decision-making," adding, "This is a grave act that disrupts capital market order and infringes on the exercise of shareholder rights, and it inherently carries the risk of obstruction of business and violations of the Financial Investment Services and Capital Markets Act, so we issue a stern warning."