Designated as National Advanced Strategic Technology… Government approval required for overseas sales, “The precursor source technology, which is a core material technology for secondary batteries by Korea Zinc, has been finally classified as a national core technology by the government. It has also been designated as a national advanced industry technology.”,
“In this context, the industry expects that even if Young Poong and MBK Partners succeed in acquiring Korea Zinc, there will be restrictions such as needing government approval for business sales.”,
“According to the industry on the 18th, the Ministry of Trade, Industry and Energy recently notified through the Industrial Technology Protection Specialist Committee’s review that the precursor manufacturing technology applied for by Korea Zinc is classified as national core technology and national advanced industry technology.”,
“Korea Zinc issued a statement today saying, ‘The precursor source technology held by Korea Zinc and its subsidiary Kemco has been recognized for its high technological and economic value in domestic and international markets, and its growth potential in related industries.’ They also mentioned, ‘The government has officially recognized that if the technology is leaked overseas, it could have a significant adverse impact on national security or the development of the national economy.'”,
“The technology judged as national core and national advanced industry technology for Korea Zinc is the ‘lithium secondary battery technology for cathode active material precursors with a nickel (Ni) content exceeding 80%.'”,
“Korea Zinc submitted an application for the judgment of these technologies through consultations with the Ministry of Trade, Industry and Energy last September. The decision was finalized recently after two reviews by the Industrial Technology Protection Specialist Committee.”,
“The government designates technology as national core technology through the Industrial Technology Protection Act (Act on the Prevention and Protection of Leakage of Industrial Technology), if the technology has high technological and economic value in domestic and international markets, or if there is a potential for significant adverse effects on national security and the development of the national economy if leaked overseas.”,
“Under the National Advanced Strategic Industry Act (Special Measures Act for Strengthening and Protecting the Competitiveness of the National Advanced Strategic Industry), technologies having a significant impact on national and economic security, meaning substantial effects on exports, employment, and the broader economy, and having remarkable ripple effects on related industries, are designated as national advanced strategic technologies.”,
“With the designation of Korea Zinc’s technology as national core technology, it draws attention as to whether it will act as a variable in Young Poong and MBK’s attempt to secure management rights. The attempt to acquire Korea Zinc is not impossible, but there may be some restrictions following the acquisition.”,
“Due to the nature of private equity, there might be attempts to recoup investment through business sales, but since the assets or businesses designated as national core technology require government approval for overseas sales, it could become an unforeseen obstacle in the future acquisition process, according to analyses.”,
“A representative from Korea Zinc stated, ‘Through our proprietary technology, we expect to improve precursor productivity and achieve superior quality by shortening overall process time, reducing processing costs, and improving line efficiency. We also anticipate that it will contribute to economic security in the battery industry by diversifying the supply chain of key minerals for secondary battery materials, thereby reducing dependence on specific countries.'”