Regulator requests probe into Korea Zinc, Korea Economic Daily reports

YoungPoong

07/01/2025 12:39

SEOUL, Jan 7 (Reuters) - South Korea's financial
regulator has asked prosecutors to conduct an investigation into
Korea Zinc  010130.KS  over allegations that its now scrapped
plan to issue new shares involved unfair practices, Korea
Economic Daily said on Tuesday.  
    In November, the chairman of Korea Zinc's board Yun B. Choi
dropped a plan to issue new shares worth $1.8 billion that had
sparked an investigation by the financial watchdog and a share
sell-off.
    The world's top zinc refiner had announced the share plan in
October in a move perceived by analysts as a strategy to fend
off a takeover by Young Poong  000670.KS  and MBK Partners, just
two days after Korea Zinc bought back shares at a higher price.
    The Financial Supervisory Service said in October it was
investigating whether Korea Zinc had omitted its plan to issue
new shares intentionally when it offered to buy back shares via
a tender offer. 
    The FSS referred the matter to prosecutors, alleging that
Korea Zinc's management and board had violated capital market
law, according to the report. 
    A spokesperson at the FSS declined to comment on the story
or to elaborate, as the probe is still underway. A Korea Zinc
spokesperson had no immediate comment.
    Korea Zinc plans to hold a special shareholders' meeting on
Jan. 23 to discuss the appointment of directors proposed by
Young Poong and private equity firm MBK Partners amid an
escalating fight for control of the company.

 (Reporting by Hyunjoo Jin; Additional reporting by Cynthia Kim;
Editing by Jan Harvey)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))