![[Seoul=NEWSIS] Reporter Ko Seung-min = Youngpoong lost its first-instance shareholder derivative lawsuit against Chairman Choi Yoon-beom of Korea Zinc and others, which had alleged that Korea Zinc's public tender offer for treasury shares caused damage to the company. The photo shows the exterior of Korea Zinc's headquarters in Seoul on the 22nd. The Civil Division 30 (Presiding Judge Kim Seok-beom) of the Seoul Central District Court ruled that the decision by Korea Zinc's directors to conduct a public tender offer for treasury shares did not constitute a breach of their duty of care or duty of loyalty. October 22, 2026. kkssmm99@newsis.com /Photo=Ko Seung-min](https://thumb.mt.co.kr/cdn-cgi/image/f=avif/21/2026/11/2026111216373078800_1.jpg)
Youngpoong and MBK Partners stated on the 12th that the court's ruling canceling the resolutions passed at Korea Zinc's regular shareholders' meeting last March "solemnly confirmed that the arbitrary stripping of voting rights from Youngpoong, the largest shareholder, cannot be justified." Youngpoong and MBK Partners are currently engaged in a control dispute with Chairman Choi Yoon-beom of Korea Zinc.
In a statement released on the same day, Youngpoong and MBK Partners said, "The court clearly confirmed through its ruling that cross-shareholding cannot be applied to restrict the voting rights of existing shareholders for the purpose of defending corporate control."
On the same day, the Seoul Central District Court ruled that Korea Zinc must cancel the resolutions passed at its regular shareholders' meeting last March that restricted the voting rights of Youngpoong and MBK Partners. The plaintiff was on the side of Youngpoong. The subject of the cancellation includes partial amendments to the articles of incorporation, such as setting an upper limit on the number of directors, and resolutions for the appointment of directors and audit committee members, which were voted on at the regular shareholders' meeting on March 28 last year.
Youngpoong and MBK Partners claimed that "an illegal structure directly violating the ban on circular investment under the Fair Trade Act was deployed," and that "57 billion won in funds, which should have been used for the company's investments and core business, was mobilized for an illegal defense of corporate control."
They added, "The Supreme Court has already finalized the fact that the measure restricting Youngpoong's voting rights at the extraordinary shareholders' meeting in January 2025 was unlawful, as confirmed at the end of last August."
Furthermore, they stated, "Director Choi Yoon-beom and Korea Zinc's management must clearly apologize to all shareholders for illegally restricting the legitimate voting rights of the largest shareholder, thereby undermining shareholders' legitimate rights and Korea Zinc's corporate governance structure."
Korea Zinc said it would immediately appeal this ruling, stating that "the first-instance court's judgment that cross-shareholding provisions cannot be applied to restrict the voting rights of existing shareholders for the purpose of defending corporate control contradicts not only existing Supreme Court precedents but also the Supreme Court's decision in the preliminary injunction case regarding the exercise of voting rights in this matter."
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