Korea Zinc's (010130) labor union said MBK Partners' management is putting at risk the critical mineral supply chain, an area tied to national security.
The union made the claim during a protest in front of the Mondrian Hotel in Seoul's Yongsan district, where Korea Zinc held its 53rd extraordinary shareholders meeting on the 9th.
The union said MBK has been seizing management control across state-backbone industries, public services and consumer-facing businesses. Citing Homeplus, which MBK acquired for 7.2 trillion won ($5.2 billion) in 2015 and which later entered court-led rehabilitation, the union warned that job security at Korea Zinc could also collapse, given the company's role in critical mineral operations directly linked to national security.
The union also stressed that MBK is threatening national security by bringing in Chinese capital. At a parliamentary audit of government agencies in 2024, it was confirmed that China Investment Corp. participated as a limited partner in a fund MBK used in its bid for management control of Korea Zinc. U.S. Rep. Eric Swalwell said at the time that the arrangement could weaken joint efforts by South Korea and the United States to block leaks of critical technology or Chinese influence.
"MBK puts cost recovery ahead of workers," the union said. "MBK must immediately halt its involvement in the management of Korea Zinc, a company rooted in Ulsan and a workplace for its workers."
At the extraordinary meeting, Korea Zinc faces a proxy fight with Young Poong (000670) and MBK over proposals to appoint four independent directors and one audit committee member. Both sides see a strong chance of splitting the independent director seats two apiece, leaving the single audit committee seat to decide the outcome of the meeting. Korea Zinc nominated Baek In-kyu, former chairman of the board at Deloitte Korea, while Young Poong and MBK put forward Park Yu-kyung, former head of Asia-Pacific at Dutch pension investor APG Asset Management.
