By Kwanwoo Jun
Major shareholders at Korea Zinc, the world's largest zinc smelter pushing for a multi-billion-dollar U.S. joint venture, have sought a court injunction to stop its plans to issue shares to fund the project.
Private equity firm MBK Partners and Young Poong, which claim to hold a combined stake of well over 40% in Korea Zinc, said they filed a complaint with the Seoul Central District Court on Tuesday to block the company's planned rights issue.
Korea Zinc's stock fell 14% to close at 1,370,000 won, equivalent to $932.75, in Seoul Tuesday, highlighting renewed market jitters over the ongoing dispute between Chairman Yun B. Choi and the rival MBK-Young Poong alliance for control over the company.
The stock erased its nearly 5% gain in the prior session on news of the joint venture. The benchmark Kospi closed 2.2% lower on Tuesday.
MBK and Young Poong said their move was not aimed at opposing Korea Zinc's plan to build a $7.43 billion smelter in the U.S. but to block the planned share issuance which they say was structured to preserve Chairman Choi's control over the company.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
12-16-25 0248ET
