MBK Partners and Youngpoong, embroiled in a conflict with Korea Zinc's management, held an event in the U.S. related to Korea Zinc's 'Project Crucible.' This event took place despite previous concerns raised by MBK and Youngpoong regarding the project's execution.
According to industry sources, MBK and Youngpoong hosted a reception on July 9 in Nashville, Tennessee, inviting local figures. Attendees included MBK Vice Chairman Yoon Jong-ha and representatives from Youngpoong.
During the event, MBK and Youngpoong introduced themselves as the largest shareholder group of Korea Zinc, stating their support for Project Crucible.
Project Crucible involves the construction of an integrated smelter in Tennessee. The current management, led by Korea Zinc Chairman Choi Yoon-bum, has been promoting the project as part of U.S.-Korea economic cooperation and the stabilization of critical mineral supply chains.
However, MBK and Youngpoong previously opposed a capital increase through a third-party allocation during the establishment of a joint venture with the U.S. government, leading them to file for an injunction.
MBK stated, 'We have never denied or opposed the strategic value of the U.S. smelter project. The injunction was filed due to the opaque decision-making process and the aggressive push for a third-party allocation that excluded major shareholders.'
In contrast, a Korea Zinc representative remarked, 'It is difficult to understand that hostile M&A opponents held a related event without prior consultation with the company regarding a project that the current management, including Chairman Choi Yoon-bum, has been promoting for U.S.-Korea economic cooperation and supply chain stabilization. They should reflect on their previous opposition to capital increases for the Crucible project.'
As the U.S.-Korea cooperation project surrounding critical mineral supply chains escalates into a management dispute, tensions regarding project leadership and decision-making processes are expected to continue for the foreseeable future.
* This article has been translated by AI.
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