Private equity firm MBK Partners announced today (August 20) that it plans to take legal action, including filing criminal complaints, claiming that explanatory materials distributed by Korea Zinc ahead of next month's extraordinary general meeting of shareholders contain false and distorted information.

MBK stated that it sent official letters to Korea Zinc Inside Director Choi Yun-beom and CEO Park Ki-duk, demanding the immediate deletion of contents deemed contrary to the facts in the materials and requesting measures to prevent recurrence.

The firm explained that MBK portfolio companies mentioned in the materials also sent separate official letters to Korea Zinc demanding the removal of the relevant contents.

MBK argued that Korea Zinc distorted objective facts regarding the normal management activities of professional executives at MBK portfolio companies in the extraordinary general meeting agenda explanatory materials posted on its website.

As a specific example, it cited the adjustment of cooking oil supply prices by chicken franchise company B in 2022.

At the time, as international sunflower oil prices surged due to the Russia-Ukraine war, company B temporarily raised its supply prices and normalized them after supply and demand stabilized. However, MBK claimed that Korea Zinc's materials highlighted only the conflicts with franchise store owners without mentioning this background context.

MBK also refuted that even though company B is not currently engaged in legal disputes with competitors, Korea Zinc stated to the effect that "controversies such as lawsuits with competitors have persisted."

In addition, MBK stated that domestic insurance company L, presented by Korea Zinc as an example of an MBK portfolio company, is not actually a company invested in by MBK.

The MBK side stated, "They are dragging in external companies unrelated to the shareholders' meeting agenda, distorting facts, and defaming our reputation," adding, "If the materials are not removed, we will take all possible legal measures."

It further pointed out, "Instead of explaining to shareholders the fundamental issues they are facing, such as various allegations of illegal and unlawful acts and sanctions from financial authorities, Korea Zinc management, including Chairman Choi, is indiscriminately pulling in external companies unrelated to the shareholders' meeting agenda, distorting facts, and damaging reputations."

Korea Zinc is scheduled to hold an extraordinary general meeting of shareholders on September 9.

MBK and Youngpoong, the largest shareholders of Korea Zinc, have been vying for management control of the company with Korea Zinc Chairman Choi Yun-beom since September 2024.

In response to MBK's warning of legal action, Korea Zinc expressed strong regret and pushed back.

Korea Zinc argued, "MBK has not specified which parts of our agenda explanatory materials are false or distorted, nor has it presented objective grounds supporting how those contents differ from actual facts," adding, "The agenda explanatory materials were prepared based on materials with official authority and reliability, such as regulatory procedures, press releases, and public disclosures."

(Photo provided by MBK Partners, Yonhap News)