Court rejects Young Poong-MBK injunction bid, clears Korea Zinc’s US smelter plan

Korea Zinc has cleared a key legal hurdle, paving the way for its planned third-party share issuance to fund a U.S. smelter construction project. The development follows a Seoul court’s decision on Wednesday to dismiss an injunction request filed by the Young Poong–MBK Partners alliance amid an ongoing management control dispute. Following the decision, Korea Zinc’s U.S. joint venture is expected to secure a 10 percent stake in the company later this month, allowing the Crucible Project to build a large-scale smelter in Tennessee to proceed on schedule. Young Poong and MBK voiced disappointment over the ruling, reiterating concerns about potential dilution of existing shareholder value and longer-term financial risks. Even so, the alliance said it would support the project to help ensure its smooth execution. The alliance is the largest shareholder of the world’s largest zinc smelter and has challenged Chairman Choi Yun-beom’s leadership since September 2024, arguing that his mismanagement has weakened the company’s financial health. Korea Zinc plans to form a joint venture,