MBK Partners and Young Poong have called on Korea Zinc chairman Choi Yun-beom to step down, reopening a two-year fight for control of the world's largest zinc smelter. The demand follows their defeat in a board vote on September 9.
At a glance
- The alliance says Choi's exit is the starting point for fixing Korea Zinc's governance and finances.
- Choi's nominee won the September 9 audit committee vote with 81.8% of the votes cast, lifting his board seats to 12 of 19.
- Tax officials are separately probing up to 400 billion won ($264 million) in alleged illicit fund outflows.
Background
Korea Zinc runs the world's largest zinc smelter and also refines lead, gold, silver and other metals. Young Poong, an industrial group, is one of its largest shareholders. In September 2024, Young Poong and private equity firm MBK Partners launched a tender offer to wrest control from chairman Choi Yun-beom, starting a battle that is now in its third year.
What happened
Young Poong and MBK Partners on Monday called for Korea Zinc chairman Choi Yun-beom to leave frontline management. "Chairman Choi's departure is the starting point for normalizing Korea Zinc's corporate governance," the alliance said.
They listed a string of decisions they blame on Choi. These include Korea Zinc's investment in One Asia Partners funds, its purchase of Ignio Holdings, a treasury share tender offer and rights issue, and cross-shareholdings through its Australian unit, Sun Metals.
Why the fight is escalating
The alliance is on the back foot at the boardroom level. At an extraordinary shareholders' meeting on September 9, Choi's nominee Baek In-kyoo won an audit committee seat with 81.8% of the votes represented. The MBK-backed candidate, Park Yu-kyung, drew 27.93%. The board grew from 14 to 19 members, with Choi's side rising from nine seats to 12 and the alliance from five to seven.
A tax investigation has given the alliance fresh ammunition. The Seoul Regional Tax Service is examining allegations of up to 400 billion won ($264 million) in illicit fund outflows. Its focus is the 560 billion won Korea Zinc put into eight One Asia funds between 2019 and 2023. One Asia's founder, Ji Chang-bae, is a former schoolmate of Choi.
What it means
The vote showed that a new rule is changing how these fights are fought. Under South Korea's revised Commercial Act, which took effect in July, the largest shareholder's voting rights above 3% are capped in audit committee elections. The September vote was the first big test of that rule, and it went against the alliance.
For metal buyers, this is a fight over control rather than production capacity. The next showdown is expected at the annual meeting in March, and until then management attention stays split between running the smelter and defending control.
Our read
Outlook: neutral. The fight is over who controls Korea Zinc, not over how much zinc it produces. It would matter for prices only if it disrupted smelter operations.
What to watch
- Findings from the Seoul Regional Tax Service's investigation into the One Asia fund investments.
- Nominations and share purchases ahead of Korea Zinc's annual meeting in March.
- Any response from Choi or the Korea Zinc board to the resignation demand.
For information only, not investment advice.
Zinc price in India
metalscost.com India reference price as of 2026-10-03.
Detailed analysis
Timeline
- 2024-09-13: Young Poong and MBK Partners launch a tender offer for Korea Zinc.
- 2026-09-09: Choi's nominee wins the audit committee seat with 81.8% of votes represented; the board expands to 19.
- 2026-09-28: Young Poong and MBK demand that Choi step down from frontline management.
Government Policies
South Korea's revised Commercial Act capped big shareholders' votes at 3% in audit committee elections, reshaping the contest.
Refinery Output
Korea Zinc runs the world's largest zinc smelter, so any lasting disruption to its management would matter for refined zinc supply.
What could lift prices
- A prolonged management fight could distract from smelter investment and tighten refined zinc supply later.
- Tax findings against management could deepen instability at the world's largest zinc smelter.
What could weigh on prices
- Choi's firmer grip on the board reduces the risk of operational disruption.
- The dispute is over ownership and governance, not over smelting capacity.
Country impact
| Country | Impact | Reason |
|---|---|---|
| South Korea | Medium | The case is the first major test of the revised Commercial Act's 3% voting rule. |
| Australia | Low | Korea Zinc's Australian unit Sun Metals is part of the cross-shareholding dispute. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Metal Smelting | Neutral | The dispute is about ownership and governance rather than smelting capacity. |
Who gains, who loses
- Chairman Choi Yun-beom: His camp holds 12 of 19 board seats after winning the September vote.
- MBK Partners and Young Poong: They lost the audit committee vote and hold only seven board seats.
Other ways this could play out
- If the tax probe finds wrongdoing, pressure on Choi could shift shareholder votes before March.
- If the probe clears management, Choi's camp could consolidate control at the annual meeting.
Price risks
- A sudden leadership change could unsettle operations and supply contracts.
- Legal action between the two sides could drag on and delay investment decisions.
Technical view
Price is mixed relative to its 20-period and 50-period moving averages, showing no clear trend alignment.
Computed from metalscost.com's own stored price history.
South Korea
Australia