On the 2nd, the Supreme Court dismissed an appeal filed by Young Poong and MBK Partners against a decision rejecting their injunction to allow the exercise of voting rights against Korea Zinc. The injunction application that Young Poong and MBK filed against Korea Zinc, asking to "allow the exercise of voting rights at the general meeting of shareholders," was ultimately rejected by the Supreme Court.
Young Poong and MBK are the largest shareholders of Korea Zinc. Since Sep. 2024, they have been in a dispute with Chair Choi Yoon-beom of Korea Zinc over management control. Although Choi's side holds less equity than Young Poong and MBK, Choi's side controls the board.
Choi's side, at an extraordinary general meeting of shareholders in Jan. last year, formed a circular shareholding structure to restrict Young Poong's voting rights by having Sun Metal Corporation (SMC), a grandchild company of Korea Zinc, acquire more than 10% of Young Poong's equity.
In Mar. last year, the court partially granted an injunction filed by the Young Poong–MBK alliance to suspend the effect of resolutions at Korea Zinc's extraordinary shareholders meeting. The reasoning was that restricting Young Poong's voting rights was improper.
In response, Choi's side had Sun Metals Holdings (SMH), an Australian subsidiary and corporation, form a new cross-shareholding relationship by receiving in-kind dividends of Young Poong equity held by SMC, thereby ensuring Young Poong's voting rights would be restricted.
Then Young Poong and MBK filed an injunction in Mar. last year with the Seoul Central District Court to allow the exercise of voting rights, saying Choi's side was again stripping them of their voting rights to drive the shareholders meeting into disorder.
The Seoul Central District Court rejected the injunction. Young Poong and MBK appealed, but the Seoul High Court also rejected it on Jun. 24 of the same year. The same judgment was maintained up to the Supreme Court.