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MBK-Young Poong Alliance Accuses Korea Zinc Chair of Self-Dealing
Non-Energy Minerals · Other Metals/Minerals · yonhap_finance · 2026-08-25
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The MBK-Young Poong consortium alleges that Korea Zinc funneled funds into companies previously invested in by Chairman Choi Yun-beom's family, raising concerns over potential self-dealing.
What Happened
Allegations of Self-Dealing: The MBK-Young Poong consortium has raised serious allegations against Korea Zinc Chairman Choi Yun-beom, claiming that 69 billion won from a private equity fund backed by the company was invested into firms previously funded by Choi's family. They argue this structure was designed to inflate the value of the family's personal investments.
Evidence from Legal Records: Citing criminal records related to the CEO of One Asia Partners, the consortium detailed how Korea Zinc acted as the primary investor in funds that subsequently funneled capital into media and entertainment companies like Arc Media and High Hat. They claim these transactions were orchestrated to benefit the Chairman's personal interests.
Company's Stance: Korea Zinc has consistently maintained that as a limited partner in blind funds, it has no authority or involvement in the specific investment decisions made by the fund managers. The company continues to defend its investment processes as independent and professional.
Impact on Upcoming EGM: This latest accusation comes just ahead of the extraordinary general meeting scheduled for next month. The MBK-Young Poong alliance is using these claims to argue that the current audit committee is ineffective, pushing for the appointment of independent auditors to strengthen corporate governance.