Korea Zinc filed a police complaint against MBK Partners and Young Poong, saying they used the name and emblem of Project Crucible, a U.S. integrated smelter construction project, without permission.
Korea Zinc said on the 5th that it filed a complaint with Seoul Jongno Police Station against Korea Corporate Investment Holdings on the MBK side, Young Poong, MBK Vice Chairman Yun Jong-ha, and Young Poong Bookstore Holdings CEO Jang Se-hwan on charges of violating the Unfair Competition Prevention Act and obstruction of business.
Korea Zinc noted that MBK and Young Poong registered a domain name on June 27 that combined Project Crucible with the name of the planned project site, the state of Tennessee in the United States, and on the 9th of last month held a reception bearing the project name, inviting State Governments government official in Tennessee and local figures.
At the event, Vice Chairman Yun introduced MBK's global investment portfolio, and CEO Jang spoke to the effect that technology from Young Poong's Seokpo Smelter could be applied to Project Crucible, according to Korea Zinc.
Korea Zinc argued that MBK and Young Poong used the project name and emblem to make the reception and domain appear related to Korea Zinc, thereby hindering permitting and investment attraction work related to the project.
A Korea Zinc official said, "MBK and Young Poong tried to block the project at its source by filing for an injunction the day after Korea Zinc released the push for Project Crucible," and added, "MBK and Young Poong, which have downplayed the value and importance of Project Crucible, are now promoting it as if they were the ones leading the business, an act that deceives both governments, investors, and shareholders."
Project Crucible is a project in which Korea Zinc, together with the U.S. government and strategic investors, will invest about $7.4 billion (about 11 trillion won) to build an integrated smelter in Tennessee. It will produce 12 types of nonferrous metals, including 11 key minerals, as well as semiconductor sulfuric acid, with the goal of full operations in 2030.
Earlier, MBK and Young Poong sought an injunction to block Korea Zinc's issuance of new shares for the U.S. government and strategic investors' investment in Project Crucible, but the court rejected it.