[Edaily Marketin Reporter Hur Jieun ] Ahead of the extraordinary shareholders’ meeting scheduled for September 9, the dispute between KoreaZinc(010130)and MBK Partners and Youngpoong continues. On the 26th, MBK and Youngpoong stated, “Chairman Yoon Choi and his family could not deny the key facts that they made initial investments in unlisted entertainment and content companies, and that funds from KoreaZinc were used for follow-on investments.”
Previously, MBK and Youngpoong cited criminal case records to point out that investment vehicles funded by Chairman Choi and his family had made initial investments in three companies—Ark Media, High Hat, and Slingshot Studio—and that One Asia Partners, funded by KoreaZinc, had carried out follow-on investments totaling 69 billion won. In a press release issued the previous day, KoreaZinc refuted the claims made by MBK and Youngpoong and announced its intention to take legal action.
They explained that these companies—which operate in the media and entertainment sectors—are unrelated to KoreaZinc’s core business, and that the investment structure was designed to benefit Chairman Choi’s personal interests. Furthermore, citing the Securities and Futures Commission’s minutes, which indicate that KoreaZinc’s funds were invested in a total of four entertainment and content companies through One Asia, MBK and Youngpoong argue that the total amount of follow-on investments exceeds 69 billion won.
MBK and Youngpoong stated emphasized, “Even during the Securities and Futures Commission proceedings, the witness representing Chairman Yoon Choi was unable to deny this investment structure itself,” adding, “In its statement on the 25th, KoreaZinc also failed to directly refute any of the key facts: Chairman Yoon Choi’s prior investment, KoreaZinc’s large-scale capital injection into One Asia, One Asia’s follow-up investments in the relevant companies, and the fact that these companies are unrelated to KoreaZinc’s core business.”
KoreaZinc invested approximately 560 billion won over the five-year period from 2019, when One Asia Partners was established, through 2023. Furthermore, it contributed more than 90% of the capital to six of the eight funds managed by One Asia, effectively participating as the sole limited partner (LP). Regarding this investment process, KoreaZinc explained, “Under the Commercial Act, [fund investments] do not require a board resolution,” adding that “this investment does not violate any regulations whatsoever.”
However, MBK and Youngpoong pointed out, “That same OneAsia made follow-on investments totaling more than 69 billion won in four unlisted companies unrelated to its core business, in which Chairman Choi and his family had invested,” adding, “This is not merely a failed investment or an accounting error, but a case of misappropriation of corporate funds and breach of trust, in which the company used KoreaZinc shareholders’ funds to shoulder investment risks that Chairman Choi should have borne personally.”
They continued, “This demonstrates why independent audit committee members, separate from management, are necessary at the extraordinary general meeting on September 9,” adding, “Given that the current Audit Committee has remained silent regarding allegations of Chairman Choi’s misappropriation of company funds, shareholders must take steps to restore internal controls by appointing independent audit committee members.”
