Vice Chairman and CTO of Korea Zinc Lee Je-joong expresses his deep refusal to the MBK Partners and Young Poong M&A

• ‘Isn’t Jang Hyung-jin ashamed of himself?’ asks Vice Chairman and CTO Lee Je-joong, a living witness to Korea Zinc's history of growth, as key technical personnel also express refusal to join Jang
• A press conference held in Seoul on Sep. 24 with 20 key technical personnel to express their support for the current management
• Conflicts with Young Poong originates from Jang Hyung-jin’s continued unreasonable demands and Korea Zinc’s refusal to compromise

Vice Chairman Lee Je-joong, a living witness to Korea Zinc's history of growth, held a press conference on Sep. 24, stating, “I, along with key technical personnel and all employees of Korea Zinc (KRX:010130), stand united with the current management.” He emphasized, “If speculative funds like MBK Partners were to take control of Korea Zinc, key technologies will be siphoned off in no time, undermining the competitiveness of Korea.” Lee also made it clear that the responsibility for the current situation falls on the Young Poong advisor Jang Hyung-jin.

The press conference was held at Korea Zinc's headquarters in Seoul, with Vice Chairman and CTO Lee and 20 key technical staff in attendance.

When Young Poong's Jang Hyung-jin and MBK Partners announced a hostile M&A attempt against Korea Zinc, Lee, who has been with Korea Zinc for over 40 years, decided to speak out and called for a press conference. He wanted to make it clear that all the conflicts between Korea Zinc and Young Poong stems from Jang Hyung-jin and Young Poong, and express his concern that speculative private equity funds and the management of poorly ran refinery could completely undermine the hard work of employees who have built Korea Zinc into the world’s top non-ferrous metal refining company over the past 50 years.

At the press conference, Lee introduced the company’s key technical personnel and added, “We gathered here today to take a stand for Korea Zinc, a proud homegrown company built with our blood and sweat over the past 50 years, and bring public attention to how unjust MBK Partners’ hostile takeover is.”

Lee noted that Korea Zinc has risen from the barren soil of Korea to become one of the leading non-ferrous metals companies in the world based on technology and passion. He emphasized it should never be overlooked that non-ferrous metals industry supplies key raw materials for core industries such as automobiles, semiconductors, and steel. He condemned MBK Partners, a speculative fund financed by Chinese capital, for seeking to take over Korea Zinc in a predatory manner and stated this cannot be tolerated.

Lee also launched a scathing criticism of Jang Hyung-jin, placing full responsibility for the conflict on him. "For years Jang Hyung-jin has tried to toss hazardous wastes such as jarosite cake and cadmium stored at Seokpo Smelter to Korea Zinc,” he said, added that Jang’s demands as a major shareholder have been unreasonable and constant, asserting, "We believe all responsibilities lie with Jang Hyung-jin, who is de-facto managing Young Poong.”

Lee further criticized Young Poong’s failed management of the Seokpo Smelter, which has caused environmental damage and major industrial accidents. He pointed out that Young Poong is in continuous financial loss, with two CEOs currently imprisoned for violating the Serious Accidents Punishment Act, and that staff reductions are underway. He also noted that Young Poong has taken large dividends from Korea Zinc each year to buy more Korea Zinc shares, while neglecting to invest in or rehabilitate the Seokpo Smelter.

In contrast, Korea Zinc, Lee emphasized, possesses world-leading refining technology, and is preparing for the next 50 years with its ambitious "Troika Drive" vision. He warned that speculative capital would derail the company's efforts in promising areas such as secondary battery materials and resource recycling, calling it a "tremendous national loss."

Lee, who joined Korea Zinc in 1985, has been instrumental in elevating the company’s technology to the world’s best. He is seen as a symbol of Korea Zinc’s technical expertise, along with Honorary Chairman Choi Chang-young, who was named one of Korea’s top 100 engineers. Over the years, Lee has developed and applied technologies to improve the recovery rate of valuable metals like zinc, significantly boosting both revenue and profitability for the company.

During his tenure as the head of the zinc plant from 1999 to 2005, Korea Zinc’s zinc production surged from approximately 300,000 tons to over 400,000 tons. Lee’s innovations in the recovery of other valuable metals such as lead, gold and silver are credit for the increase of Korea Zinc's sales from around 1 trillion won in 2000 to 10 trillion won in 2023—a tenfold growth.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240925454829/en/