Key facts
- Young Poong sought 837 billion won ($631 million) in damages from Korea Zinc.
- The suit claimed Korea Zinc directors inflicted losses by purchasing shares at 890,000 won, higher than the market price of 560,000 won.
- The court ruled Korea Zinc directors did not violate managerial duties or the Commercial Act.
- Young Poong and MBK Partners plan to appeal the decision.
A Seoul court on Thursday dismissed a shareholder derivative lawsuit filed by Young Poong Corp. against Korea Zinc Co., its chairman Choi Yun-beom, and other directors. Young Poong, a major shareholder in Korea Zinc, had sought 837 billion won ($631 million) in damages, alleging that the directors caused losses by making a tender offer for Korea Zinc's own shares at 890,000 won each, significantly above the market price of around 560,000 won. The Seoul Central District Court found that the directors did not violate their managerial duties or the Commercial Act, citing the procedures followed before the share purchase. In response to the ruling, Young Poong and its ally MBK Partners stated their intention to appeal immediately, asserting that the share buyback eroded shareholder value and was primarily aimed at protecting Choi's position. The dispute stems from a six-month battle for control of Korea Zinc that concluded in March 2025, during which both sides launched competing tender offers. Young Poong currently holds a 34% stake in Korea Zinc, followed by Choi and related parties with 17%, MBK with 9%, and Hanwha Group with 9%.