Korea Zinc CTO and Engineers Threaten Resignation Amid Hostile Takeover Attempt
Korea Zinc’s Chief Technical Officer (CTO), Lee Je-joong, and key engineers have announced plans to resign if the $1.5 billion takeover bid by private equity firm MBK Partners and Korea Zinc's largest shareholder, Young Poong, succeeds. The declaration was made during a press conference, underscoring the escalating power struggle between the two founding families of the world's largest refined zinc producer.
Lee, who has been with Korea Zinc since 1985, accused MBK Partners and Young Poong of attempting a "hostile takeover" driven by financial motives, without regard for the company's technological advancements. He expressed concerns that MBK, should it gain controlling rights, could eventually sell the company to a Chinese buyer—though MBK has repeatedly refuted this claim.
The conflict intensified as Korea Zinc’s CTO criticized Young Poong's de facto leader, Chang Hyung-jin, accusing him of past environmental mismanagement and asserting that the takeover would harm Korea Zinc’s future. Lee also highlighted that MBK lacks the capability to run the company effectively.
Young Poong currently holds a 25.4% stake in Korea Zinc and aims to acquire up to an additional 14.61%, partnering with MBK through a special purpose company. If the tender offer succeeds, MBK and Young Poong would control up to 47.73% of Korea Zinc, with MBK holding a slight majority.
While MBK and Young Poong have defended the tender offer as a move to improve corporate governance, Korea Zinc’s current management sees it as a threat to the company's stability. The management dispute has grown since Chairman Choi Yun-beom took office in 2022, reducing Young Poong's stake through stock deals with companies like Hyundai Motor Group and LG Chem.
