South Korea Supreme Court finalizes document order in 930 billion-won Korea Zinc case

  • South Korea's Supreme Court rejected Jang Hyung-jin's re-appeal over Young Poong contract production.
  • 930 billion won is the approximate value of KZ Precision's shareholder derivative lawsuit.
  • The September 12, 2024, management agreement is among documents ordered for production.

South Korea's Supreme Court has rejected a re-appeal by Young Poong advisor Jang Hyung-jin, finalizing orders requiring production of the management cooperation agreement signed with MBK Partners during the fight for control of Korea Zinc. The documents include the September 12, 2024, Master Agreement on Management Cooperation and subsequent contracts involving Young Poong, Jang and Korea Corporate Investment Holdings, a special purpose vehicle established by MBK Partners. The courts said tender offer statements and other filings disclosed only a summary and did not reveal the detailed mechanics of call options, voting restrictions or potential damages. The ruling clears the way for the documents to be examined in KZ Precision's approximately 930 billion won ($678.6 million) shareholder derivative lawsuit, which names Jang and Young Poong directors as defendants. The main proceedings are expected to examine whether the agreement harmed Young Poong and its minority shareholders and determine the scope of directors' liability.

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