Korea Zinc’s $6.86B Tennessee refinery fuels bitter boardroom war with MBK Partners
A high-stakes legal battle is unfolding between Korea Zinc and private equity firm MBK Partners over control of the company. The dispute comes as Korea Zinc prepares for a major joint investment with the U.S. government to build a critical metals refinery in Tennessee. Meanwhile, MBK Partners’ leadership faces fraud charges in a separate case, which could shift the balance of power in the corporate struggle.
MBK Partners Chairman Kim Byung-ju and three senior executives will appear in court on Tuesday. They face arrest warrants over allegations of fraud and violations of the Capital Markets Act, linked to questionable sales of short-term bonds by troubled retailer Homeplus. If the court approves the warrants, Kim’s legal troubles may weaken MBK Partners’ position in its ongoing dispute with Korea Zinc.
The two sides are locked in a fight for management control of Korea Zinc, one of the world’s largest zinc and lead producers. As part of its strategy, Korea Zinc plans to transfer a 10 percent stake to a joint venture tied to the Tennessee refinery project. This move is expected to bolster Chairman Choi Yun-beom’s influence ahead of a key shareholders’ meeting in March. The refinery project itself is a massive $6.86 billion (10 trillion won) investment between Korea Zinc and the U.S. government. However, some major shareholders have formed a coalition questioning the venture and are reportedly considering legal action. The court’s decision on Tuesday could further sway the outcome of the corporate power struggle.
The Seoul court’s ruling on the arrest warrants will determine whether Kim Byung-ju remains free to challenge Korea Zinc’s leadership. A decision against him could strengthen Choi Yun-beom’s grip on the company, particularly with the upcoming stake transfer. The outcome may also affect the progress of the Tennessee refinery project and the broader battle for control of Korea Zinc.
