Young Poong's request for an injunction seeking to compel Korea Zinc to continue performing their sulfuric acid handling agency contract was also rejected on appeal. The court, following the first instance, found that Korea Zinc had a reasonable ground to refuse renewal of the contract.
The Civil Division 25-2 of the Seoul High Court (Presiding Judge Hwang Byung-ha, Director General) dismissed Young Poong's appeal in the injunction case seeking to prohibit refusal of a transaction against Korea Zinc. The panel found no error, such as misapprehension of law or mistake of fact, in the first-instance decision.
The panel determined that Korea Zinc's refusal of the transaction constituted a legitimate exercise of rights in consideration of worker safety and environmental protection. It also took into account that, although Young Poong could have established an in-house disposal plan for sulfuric acid over a long period since 2003, it put in place no meaningful measures.
The panel also rejected the claim that Korea Zinc refused the transaction with the purpose of hindering Young Poong's business. Given the aging of sulfuric acid management facilities, legal risks associated with managing hazardous chemicals, and a lack of storage space, the view is that there was a reasonable ground for Korea Zinc to refuse renewal of the contract.
The panel also relied on the fact that Korea Zinc continued to perform sulfuric acid handling agency work for about nine months after notifying termination of the contract. It found that a grace period had been given for Young Poong to prepare an alternative disposal plan.
The case began when Korea Zinc refused in 2024 to renew Young Poong's sulfuric acid handling agency contract. Young Poong applied for an injunction seeking to have Korea Zinc continue handling sulfuric acid generated at the Seokpo Smelter, but both the first instance and the appeal were rejected.
The main case, a lawsuit seeking to prevent unfair trade practices, is still at first instance.