This article was published on May 31, 2026, at 06:21 on Signal, the capital markets compass.
As the National Tax Service (NTS) conducts a tax investigation into Korea Zinc, observers expect the probe to extend to scrutinizing the appropriateness of the company's controversial investments in One Asia Partners. Industry sources point to Korea Zinc's 560 billion won investment in One Asia, a newly established private equity fund (PEF) manager, with some of the funds incurring losses. Korea Zinc, for its part, emphasizes that the investments were part of normal financial activities.
According to industry sources on May 31, the Seoul Regional Tax Office's Investigation Bureau 4, which is leading the probe into Korea Zinc, may also examine the appropriateness of the One Asia fund investments. A key question could be whether normal internal processes and review procedures were followed during the investment process. Between 2019 and 2023, during the tenures of Honorary Chairman Choi Chang-keun and Chairman Choi Yoon-beom, Korea Zinc invested 560 billion won in eight One Asia funds. One Asia was a newly established fund manager with no investment track record, founded in 2019 by CEO Ji Chang-bae, an elementary and middle school classmate of Chairman Choi.
The investment banking (IB) industry views Korea Zinc's investment process and structure with One Asia funds as unusual. While global PEF managers typically charge management fees of 1.0% to 1.5% of committed capital, One Asia received 2.0% to 2.5% annually. Korea Zinc was effectively the sole limited partner (LP), holding more than 96% of the stake in six One Asia funds. A Korea Zinc official said, "Management fee rates varied across each fund, and overall they were at industry-standard levels," adding, "One Asia gained recognition for its expertise in the media sector by investing in production companies that created major hit OTT titles."
Korea Zinc's One Asia investments are also being contested at the Financial Supervisory Service's (FSS) Accounting Audit Committee. The FSS launched an accounting review of Korea Zinc in October 2024 and converted it to an accounting audit in November. The audit reportedly focuses primarily on whether losses ultimately incurred from investments in One Asia funds were properly reflected in the financial statements. The 29th Civil Division of the Seoul Central District Court recently ordered Korea Zinc to submit internal documents related to One Asia-managed funds. The documents to be submitted include investment proposals, operating plans, internal review documents, draft documents, and capital commitment execution records.
"If the allegations are true, the duty of loyalty to shareholders by directors who approved the One Asia investments could become an issue," an industry official said. "Based on what has been revealed, the investment process does not appear to have been ordinary." A Korea Zinc official said, "The NTS investigation is a routine tax probe, and the court's document submission order is a standard procedure typically used to verify facts," adding, "Past investments were normal financial activities conducted in accordance with relevant laws and management judgment." An NTS official said, "We cannot confirm the specific targets of a tax investigation due to legal restrictions."
