The management dispute between Chairman Choi Yoon-bum and MBK Partners and Youngpoong has entered its second year, with over 30 related lawsuits filed. Despite the turmoil, Korea Zinc is evolving from a simple non-ferrous metal smelting company to a key player in the global critical minerals supply chain.
Amid fierce external pressures, Korea Zinc, under Choi's leadership, achieved record sales of 16.58 trillion won and an operating profit of 1.23 trillion won last year. In the first half of this year, the company reported sales of 12.44 trillion won and an operating profit of 1.33 trillion won, marking the highest figures for a half-year period. This transformation is a result of its strategy to become a central hub in the critical minerals supply chain, expanding investments in strategic minerals such as antimony, indium, bismuth, and tellurium, as well as in battery materials, resource recycling, and rare metals.
Project Crucible, being developed in Tennessee, symbolizes the 'New Korea Zinc.' This $7.4 billion initiative will establish large-scale smelting and processing facilities to produce critical minerals designated by the U.S., including zinc, lead, copper, antimony, indium, bismuth, gallium, and germanium. Of the 12 planned products, 11 are included in the U.S. critical minerals list.
As China tightens export controls on critical minerals like antimony, gallium, and germanium, these resources have become national security assets rather than mere raw materials. The U.S., which heavily relies on foreign sources for critical minerals, aims to strengthen supply chain cooperation with South Korea through Project Crucible. The establishment of a joint venture with the U.S. government, which has secured a 10.6% stake in Korea Zinc, underscores the strategic nature of this project. Notably, the project has been designated for the U.S. federal government's expedited permitting process, known as FAST-41.
U.S. Secretary of Commerce Gina Raimondo has cited Korea Zinc's project as a prime example of investment in the critical minerals supply chain, and former President Donald Trump has praised it as a "great success." However, the management struggle continues, with MBK and Youngpoong criticizing the project's funding and the U.S. government's equity participation, leading them to file for an injunction against the issuance of new shares. The Seoul Central District Court dismissed the injunction, stating that the issuance of new shares was necessary to achieve the management goals related to the project.
Korea Zinc is no longer a company that can be evaluated solely based on the private interests of specific major shareholders or executives. It is a strategic asset that must expand its global critical minerals business sustainably and enhance the competitiveness of the domestic supply chain. The stability of management should be viewed not as a shield for Chairman Choi but as a condition for the continuity of long-term investment. As the world increasingly recognizes Korea Zinc as a partner in the critical minerals supply chain, the management issues surrounding the company should also be assessed within the broader context of industrial security.
* This article has been translated by AI.
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