SEOUL, South Korea--(BUSINESS WIRE)--Australian lawmakers have expressed concerns over the ongoing ownership battle for Korea Zinc (KRX:010130), the world’s largest zinc smelter. The high-profile dispute, which pits Korea Zinc's Chairman Yun B. Choi against an alliance led by MBK Partners and Young Poong, has raised fears of potential disruptions from foreign entities in clean energy projects and the global zinc supply chain. The South Korean government has also acted by designating Korea Zinc’s proprietary technology as a “National Core Technology.”
Queensland Senator Nita Green emphasized the risk posed by foreign entities lacking a long-term vision for North Queensland, stating “Korea Zinc supports hundreds of jobs in Townsville and has a really good safety record. I am concerned about any ownership change and what that might mean for the people of Townsville. As a North Queensland senator, I will continue to express my concerns publicly until this matter is over.”
Former Queensland Premier Annastacia Palaszczuk echoed these sentiments on social media in support of Choi, praising his contributions to the region’s renewable energy initiatives and questioning whether “Yun’s leadership on renewable energy can be maintained.”
Bob Katter, a member of the Australian Parliament, has called for direct government intervention by submitting a formal query to the Australian prime minister, urging “high-level government intervention and diplomacy” to stop this hostile takeover and safeguard Australian jobs and industries. “A bunch of … shareholder sharks that wouldn't know the difference between zinc and kryptonite want to play Monopoly games — they will conquer and divide with disastrous outcomes,” Katter wrote in the statement.
South Korea’s Ministry of Trade, Industry, and Energy (MOTIE) has further underscored Korea Zinc’s strategic importance by designating its high-nickel precursor manufacturing technology – a key component for battery cathodes – as a national core technology under the Act of Prevention of Divulgence and Protection of Industrial Technology. The designation, announced on Nov. 18, requires government approval for any foreign acquisition, including MBK Partners, effectively protecting Korea Zinc’s propriety assets from potential exploitation.
Korea Zinc reported robust financial performance in 3Q 2024, posting consolidated sales of KRW 3.267 trillion and an operating profit of KRW 150 billion. This marks the 99th consecutive quarter of profitability since 2000, showcasing the company’s resilience and market leadership.
In contrast, Young Poong Corp., Korea Zinc’s largest shareholder and a key player in the MBK alliance, reported a loss of KRW 65.67 billion in revenue and an operating loss of KRW 17.9 billion.
