Korea Zinc Rejects MBK and Young Poong Allegations, Points to Their Own Controversies

Korea Zinc urged MBK Partners and Young Poong to stop making what it called unsubstantiated allegations and to address controversies in their own businesses, in a November 3 statement as the fight over management control continues. Nate reported the statement. Korea Zinc is the world's largest refined zinc smelter, producing zinc, lead, copper, silver and critical minerals from its Onsan Smelter and global operations, and is building a $7.4 billion US critical minerals smelter via Project Crucible.

Korea Zinc's November 3 Statement

Korea Zinc accused the two shareholders of running a public campaign against the company while leaving major questions about their own responsibilities unanswered. The company cited media reports that police had reopened an investigation involving Young Poong Group adviser Chang Hyung-jin over alleged heavy-metal contamination of the Nakdong River linked to the Seokpo smelter. According to those reports, the case moved to a regional investigation unit after a Seoul Metropolitan Police Agency review committee ordered a renewed investigation following criticism of the earlier decision not to refer the case for prosecution.

Korea Zinc said Young Poong should cooperate fully with the environmental investigation instead of focusing on allegations against another company. It also called on MBK Partners to respond responsibly to the Homeplus crisis, citing parliamentary scrutiny of management accountability and harm to employees and suppliers, and referenced criticism of MBK Chairman Michael ByungJu Kim's absence from parliamentary audit proceedings. Korea Zinc separately rejected the investment-related allegations, maintaining that MBK and Young Poong had improperly linked transactions undertaken independently by separate legal entities. "We will respond firmly to attempts to present unverified suspicions as established facts," the company said, while recognizing the importance of reasonable oversight and constructive criticism.

Earlier the same day, Young Poong called on Korea Zinc Chairman Choi Yun-beom to personally explain allegations that company funds had been used for private benefit. Young Poong alleged that funds backed by Korea Zinc invested a combined KRW 79 billion in four unlisted entertainment companies after Choi and his family had invested in them, raising potential conflict-of-interest concerns. Korea Zinc maintains that the investments were separate transactions made independently.

Korea Zinc's Smelter Scale

Korea Zinc holds the position of world's largest refined zinc smelter and a leading global non-ferrous metals producer, according to akta.pro company records. The same records show 2025 revenue of 16.58 trillion won, up 37.6% year on year, and operating profit of 1.23 trillion won, up 70.3%, both all-time records in its 44-year history. First-quarter 2026 revenue was 6.07 trillion won with operating profit of 746.1 billion won.

Earlier Exchanges in the Dispute

On October 13, 2026, Korea Zinc rejected allegations from Young Poong and MBK Partners regarding a 23.659 billion won fund investment, saying its role had been misrepresented, AD HOC NEWS reported. On November 2, 2026, Youngpoong and MBK Partners called for an investigation after saying Korea Zinc had invested 100 billion won via Kakao into Graygo and Arc Media, with funds flowing to a company of director Choi Yoon-beom, Businesskorea reported.

Next Steps for Korea Zinc

Korea Zinc said it would respond firmly to attempts to present unverified suspicions as established facts, and urged MBK and Young Poong, as major shareholders, to support sustainable growth and shareholder value as global critical mineral supply chains undergo restructuring.