Korea Zinc has filed a criminal complaint against officials from MBK Partners and Youngpoong, alleging unauthorized use of the name and branding for its Project Crucible, a construction initiative for an integrated smelter in the United States. This move has intensified the ongoing management dispute between the parties.
On August 5, Korea Zinc reported that it had lodged a complaint with the Jongno Police Station in Seoul against Korea Corporate Investment Holdings, Youngpoong, MBK Partners Vice Chairman Yoon Jong-ha, and Youngpoong Bookstore Holdings CEO Jang Se-hwan for violations of the Unfair Competition Prevention Act and obstruction of business.
Korea Zinc claims that MBK and Youngpoong registered an internet domain combining the Project Crucible name with Tennessee in June and distributed invitations to local government officials featuring the name, causing confusion about the project's leadership. They also allege that at a local reception last month, MBK presented its investment portfolio and Youngpoong's Seokpo smelter technology, hindering Korea Zinc's business efforts.
Project Crucible is a $7.4 billion (approximately 11 trillion won) construction project for an integrated smelter in Tennessee, announced by Korea Zinc in December 2022 in collaboration with the U.S. government and strategic investors.
A representative from Korea Zinc stated, "MBK and Youngpoong have continuously devalued the significance of Project Crucible and attempted to obstruct its progress. Now, they are using the project name as if they are the rightful leaders, which deceives both governments, investors, and shareholders. We will hold them legally accountable for any actions that disrupt the normal advancement of the project."
In response, MBK and Youngpoong argued that Project Crucible is not a trademark owned exclusively by Korea Zinc and that they merely hosted events to communicate with local stakeholders as the largest shareholders, denying any claims of impersonation or infringement of business identifiers.
They further clarified that their previous request for a temporary injunction was not against the project itself but aimed at addressing concerns over management rights related to a third-party capital increase.
They stated, "We did not oppose the project itself; rather, we sought to prevent illegal management defense attempts that aimed to issue new shares under the pretext of the project to increase friendly stakes. We urge Director Choi to immediately cease using the company's assets and organization for personal defense purposes."
* This article has been translated by AI.
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