**MBK·Yungpo’s Rebuttal**
MBK and Yungpo, who are in a management dispute with Korea Zinc, stated on the 10th that the acquisition of Yungpo shares by their subsidiary, Sunmetal Corporation (SMC), is lawful.
On the 7th, a court ruled that SMC is not subject to the cross-shareholding regulations under commercial law. Thus, it partially granted MBK and Yungpo’s request to lift the voting rights restriction on the Yungpo-held Korea Zinc shares.
In January, Korea Zinc decided not to recognize the voting rights of Yungpo’s shares due to becoming cross-held with SMC after SMC acquired Yungpo shares. Subsequently, resolutions were passed to prevent MBK and Yungpo from taking control of the board at an extraordinary general meeting. This prompted MBK and Yungpo to apply for an injunction to suspend the resolution’s effect.
When MBK and Yungpo further argued that the SMC’s transaction of Yungpo shares should also be reversed, Korea Zinc countered that this issue is not within the scope of the court’s ruling.
SMC stated that it acquired Yungpo shares out of concern for significant negative effects on the company if MBK and Yungpo took over Korea Zinc’s management. They emphasized this as part of their efforts to protect the company’s value.
As an Australian smelting company, SMC expressed concerns over disruptions to its future growth engines, especially in renewable energy and green hydrogen businesses, and that this decision was guided by these concerns.
They also noted that acquiring Yungpo shares at approximately 30% below the market price was considered reasonable from both a financial and investment standpoint.