Photo = FSS

 

 

[Alpha Biz= Reporter Kim Jisun] Korea Zinc announced on the 21st that it has submitted an additional complaint to the Financial Supervisory Service (FSS) against MBK Partners and Young Poong for alleged fraudulent trading. The complaint pertains to the acquisition of a 1.36% stake in Korea Zinc at a discounted price during October.

The company requested an investigation into key figures, including Kim Kwang-il, Vice Chairman of MBK Partners, Jang Hyung-jin, an advisor at Young Poong, and Kang Sung-doo, CEO of Young Poong.

Between October 18 and November 11, MBK and Young Poong's alliance, through MBK's special purpose company, Korea Corporate Investment Holdings, purchased 282,366 shares of Korea Zinc (equivalent to 1.36% of its issued shares) via on-market transactions. This raised their combined stake in Korea Zinc from 38.47% to 39.83%.

The transactions took place shortly after Korea Zinc completed a public share buyback. The company alleges that during this period, MBK and Young Poong filed two successive injunctions to halt the buyback process, amplifying market uncertainty while acquiring shares at a lower price.

Korea Zinc claims that MBK and Young Poong suppressed share price growth by creating market uncertainty and subsequently acquired shares at a discounted rate, constituting a violation of the Capital Markets Act. The act prohibits the use of fraudulent schemes, manipulative plans, or deceptive practices in financial transactions.

The company argues that these actions potentially constitute the use of prohibited means to influence the market, which could warrant regulatory scrutiny and penalties.

The FSS will now review the complaint to determine whether further investigation or enforcement action is required.

 

 

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