언론보도

Young Poong Group:
“We do not oppose a strategic partnership with the United States…
What must be corrected is the issuance of new shares being used
as a tool for management entrenchment”

Young Poong would like to clarify that, with respect to the recently discussed establishment of a joint venture (JV) among Korea Zinc, the U.S. government, and U.S. corporations, as well as the construction of a smelter in the United States, we do not oppose strategic industrial cooperation with the United States.

The United States is the Republic of Korea’s most critical ally, and Young Poong supports, in principle, the expansion of strategic partnerships between the two countries in pursuit of shared goals—namely, securing critical minerals and strengthening supply-chain resilience. We also acknowledge that Korea Zinc’s technological capabilities and operational expertise can contribute meaningfully to enhancing U.S. industrial competitiveness.

Our concern is not with cooperation with the United States itself, but rather with the structure through which this cooperation is being leveraged as a means of defending an individual’s managerial control. Under the approach currently being discussed, the initiative appears less a matter of investing in a U.S. smelter project and more a matter of Korea Zinc issuing new shares through a third-party allotment—enabling foreign governments and corporations to directly acquire equity in Korea Zinc.

Young Poong believes that the transaction structure is not based on business rationale. Rather, the transaction is structured as an attempt to artificially reshape the company’s governance amid an ongoing management dispute, irrespective of genuine business needs. In particular, despite the scale and significance of the overseas project, reasonable alternatives—such as direct investment in the project entity or phased financing—have not been sufficiently considered, while the new share issuance is being rushed forward, thereby heightening concern among shareholders and the market.

The injunctive relief filed by Young Poong is not intended to obstruct cooperation with the United States. Rather, it represents the minimum necessary legal measure to ensure procedural legitimacy and governance transparency, and to prevent the company’s capital structure and shareholder value from being compromised in service of an individual’s management-control agenda.

Let us be unequivocal.

Even if the new share issuance is halted pending judicial review, strategic partnerships with the U.S. government and U.S. corporations can—and should—proceed under a lawful and properly constituted board in which Young Poong participates.

A project as consequential as building a U.S. smelter must be pursued not on the basis of personal interests, but on the foundation of the company’s long-term competitiveness, the interests of all shareholders, and the shared strategic objectives of Korea and the United States.

Young Poong will continue to keep open the possibility of strategic cooperation with the U.S. government and U.S. companies. We intend to verify the project’s substance and structure with full transparency and advance discussions in a manner that shareholders and the market can trust.

Furthermore, we will maintain active communication throughout this process to ensure that no diplomatic misunderstandings arise.

December 16, 2025
Young Poong Group