Regarding the ownership dispute of the world’s top non-ferrous metal refining company, Korea Zinc, the labor union of Korea Zinc released a statement on the 19th demanding the withdrawal of the hostile, malicious, and predatory public takeover bid by MBK Partners. Taking the side supporting the current management led by Chairman Choi Yun-bum of Korea Zinc, MBK Partners, a private equity fund that launched a public takeover bid for Korea Zinc along with YP Holdings, held a press conference on the same day stating that they will communicate sufficiently with the city of Ulsan and the labor union of Korea Zinc.
On the same day, the labor union of Korea Zinc, under the Korean Confederation of Trade Unions, held a demonstrative rally in front of the MBK headquarters in Jongno-gu, Seoul, and released a statement urging the withdrawal of the public takeover bids by MBK and YP Holdings.
The union claimed, “Korea Zinc, the world’s leading non-ferrous metal refining company with a 50-year history, faces a huge threat of being taken over by the corporate hunter, private equity fund MBK Partners.” They argued, “These entities are attempting to acquire Korea Zinc, which has been built over the past 50 years through the sweat and dedication of workers, solely as a means to make money.”
Furthermore, they demanded, “MBK Partners should immediately declare the withdrawal of the public takeover bid and halt the exploitation of Korea Zinc workers’ jobs.” They also called for active government intervention, stating, “The government should proactively respond to this public takeover bid, which raises concerns about the plundering of Korea Zinc, a core asset of the national basic industries, and selling it off to foreign capital.” The National Pension Service, which holds about 7% of Korea Zinc shares, is considered a key player in this ownership dispute.
At 10 a.m. on that day, MBK held a press conference at Lotte Hotel in Sogong-dong, Seoul, to refute allegations of ‘Chinese capital suspicions’ raised by some parties. MBK Partners Vice Chairman Kim Kwang-il stated during the press conference that “MBK Partners was established in 2005 and received domestic regulatory supervision as a domestic fund in accordance with the Capital Markets Act, not as a foreign fund” and refuted claims of being a Chinese fund as baseless.
He also stated, “I will clearly state that we will not sell to China,” and “We will keep our promise as government authorities will be watching.” Regarding recent allegations of ‘corporate hunting and eating set-ups’ raised in Ulsan and Ulsan City Council, he mentioned, “Due to public takeover regulations, we could not have close consultations in advance, but we have requested a meeting with Ulsan City and will provide sufficient explanations.”