MBK Partners and Young Poong Refute Korea Zinc's Baseless Claims

SEOUL, South Korea -- (BUSINESS WIRE) --

MBK Partners has clarified its position on a matter involving Korea Zinc, stating that the company is making claims that are far from reality. The matter dates back to May 2022, when a person known to be close to Chairman Choi Yoon-beom of Korea Zinc approached MBK Partners' Special Situations team, one of its investment management divisions, seeking investment.

MBK Partners addresses the matter to correct the record and set the facts straight.

• MBK Partners operates its      investment management business through two primary divisions:

1. Buyout Division – Focused on acquiring controlling stakes in companies.
2. Special Situations Division – Specializing in minority stake investments, private debt, and other financial opportunities.

• The Buyout and Special      Situations divisions are fundamentally separate entities within MBK      Partners. These divisions are governed by a strict “Chinese Wall” policy,      ensuring that there is no exchange of information between the two. This      separation is rigorously enforced through compliance measures to maintain      transparency and regulatory adherence. Each division operates with      distinct investment targets and strategies.

• The Buyout Division of MBK      Partners, which collaborated with Korea Zinc’s largest shareholder, Young      Poong as a white knight, on the recent public tender offer, has no      connection to the investment proposal made by a person known to be close      to Chairman Choi in May 2022. Prior to the publication of Korea Zinc's      allegations, the Buyout Division was unaware of this proposal or any      materials received by the Special Situations team.

• Following the publication of      these allegations, under MBK Partners compliance team’s review and      approval, the Special Situations Division confirmed that the materials      received from Korea Zinc were explanatory document about the Troika Drive,      developed by the consulting firm BCG for Korea Zinc. These materials were      largely identical to those publicly available on Korea Zinc’s website and      in its IR materials. The investment discussion was closed without further      action in June 2022.

• Korea Zinc’s claim that the      Buyout Division may have used the Troika Drive documents in its public      tender offer demonstrates a fundamental misunderstanding of MBK Partners'      structure and practices. This claim is speculative and baseless, stemming      from a lack of awareness about the firm’s operations and internal      controls.

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