Korea Zinc has warned of legal action against MBK Partners and Young Poong, accusing them of "distorting facts and misleading public opinion."
In a statement Tuesday, Korea Zinc said MBK Partners and Young Poong were "once again distorting the facts surrounding the company's past investments and recycling the same claims ahead of the extraordinary shareholder meeting scheduled for Sept. 9, causing confusion in the market."
Korea Zinc said the two parties were "arbitrarily cherry-picking and stitching together selective portions of information while omitting the actual facts and context of the matter, and distorting unconfirmed content as though it carries the force of established legal fact, then spreading one-sided claims through the media." The company added that "in the criminal records and related court rulings that the opposing side cites as its basis, Korea Zinc has in fact been recognized as the victim."
Korea Zinc said it was the company's assessment that MBK and Young Poong were "repeating the same pattern of continuously distorting facts and misleading public opinion to cause ongoing confusion among shareholders and the market, having pursued a hostile takeover attempt for nearly two years." The company said it would "thoroughly examine the legal grounds for such conduct and hold them strictly accountable through all available civil and criminal measures."
Particularly regarding the fund managed by One Asia Partners, Korea Zinc doubled down that it "merely invested capital as a limited partner in the fund, while the general partner independently made individual investment decisions," and that "the company's fund investment and capital management have consistently been carried out as part of normal business operations conducted through lawful procedures in accordance with relevant laws and internal regulations."
Korea Zinc also said the ongoing distortion of facts and public-opinion campaign by MBK and Young Poong was spreading unnecessary confusion among shareholders and the market.
Korea Zinc said the materials cited by MBK and Young Poong "relate to the investigation and trial of a separate criminal case currently under appeal at the Seoul High Court." The company criticized the move as a "textbook example of the distortion and abuse of unconfirmed litigation records" that the Supreme Court has cautioned against in its precedents, including the 2019Ma6016 decision. "Not only has no final judicial determination been made, but the credibility of statements and evidence remains legally contested — these are nothing more than 'unconfirmed materials' — yet they are being used as though the legal judgment were final," the company said.
Korea Zinc further said that exploiting unconfirmed materials in a public-opinion campaign ahead of a shareholder meeting constituted a serious distortion of facts capable of misleading shareholders and the market. The company explained that disclosing or using records obtained during litigation for purposes unrelated to the litigation itself is an area strictly restricted by relevant laws.
Korea Zinc said the Code of Criminal Procedure — including Articles 266-16 and 59-2 — "strictly prohibits criminal records from being handed over or leaked to third parties for purposes other than preparing for litigation," and that "the circumstances under which the materials used this time were obtained and provided, and the manner and purpose for which they were used externally, must be fully investigated."
The company urged MBK and Young Poong to "immediately cease misleading public opinion and damaging the reputation of the company and its management in pursuit of a hostile takeover," adding that it would "pursue accountability to the end through all available civil and criminal legal measures against any potentially unlawful conduct, including defamation through distortion of facts, the improper leaking and use of trial records, and the solicitation of voting rights using such materials."
Meanwhile, MBK Partners and Young Poong alleged Tuesday that 69 billion won ($50 million) from a private equity fund invested by Korea Zinc had been channeled into an unlisted entertainment company in which members of Choi Yun-beom's family had already invested personal funds, raising allegations of self-dealing.
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