"We submitted an application for national core technology designation yesterday," a Korea Zinc official said on Wednesday. "The technology in question is related to secondary battery material precursors, specifically our patented high-nickel precursor processing technology."
The move comes amid an escalating management control dispute between Young Poong and Korea Zinc, both co-founded by the Chang and Choi families but have recently become embroiled in a battle for control of Korea Zinc.
Young Poong, in partnership with MBK Partners, had earlier announced plans on Sept. 12 to acquire a 7 to 14.6 percent stake in Korea Zinc through a public tender offer, investing about 2 trillion won ($1.5 billion) to gain management control.
In response, Korea Zinc subsidiary Young Poong Precision Corp. on Friday filed a criminal complaint against Young Poong's advisor Chang Hyung-jin and three outside directors, as well as MBK Partners and its vice chairman Kim Kwang-il, accusing them of breach of trust.
Young Poong countered by filing a criminal complaint against Korea Zinc Chairman Choi Yun-beom and former CEO Noh Jin-soo for alleged breach of trust related to the company's investments in private equity funds and overseas subsidiaries, Young Poong revealed on Wednesday.
If Korea Zinc's technology receives national core technology status, it would require government approval for any foreign entity to acquire the company, potentially complicating MBK Partners' involvement in the deal.
While MBK Partners has stated it has no plans to sell to Chinese investors, the potential national core technology designation could complicate any future attempts to sell Korea Zinc to overseas buyers, particularly to countries like China.
Industry experts say the outcome of this management dispute could have significant implications for Korea's position in the global non-ferrous metal smelting industry, where Korea Zinc currently holds a leading role.
The Korean government, which has thus far maintained a neutral stance on the issue, is expected to carefully review Korea Zinc's application given the potential impact on the country's key industries and economic security.
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