The Supreme Court ruled that the action taken by Korea Zinc (010130) at a temporary shareholders' meeting in January last year to limit the voting rights held by Youngpoong (000670) using its Australian subsidiary, Sun Metals Corporation (SMC), was illegal.
According to legal circles on the 31st, the Supreme Court upheld the original ruling that SMC, Korea Zinc's Australian affiliate, did not qualify as a statutory subsidiary under the Commercial Act. This decision followed the Seoul Central District Court's partial acceptance of Youngpoong's injunction application in March last year and was finalized after an appeal.
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MBK·Youngpoong said, "This Supreme Court ruling will be important consideration in the Fair Trade Commission's review to determine whether Korea Zinc attempted to circumvent domestic legal order and shareholder rights by using overseas affiliates as a backdoor."
Meanwhile, Korea Zinc refuted the decision. The company argued that the injunction decision only addressed the legal status of SMC under the Commercial Act at the time of the temporary shareholders' meeting in January 2025 and does not affect the current management system and governance structure.
The current management system and governance structure were established based on the regular shareholders' meeting held in March 2025. Korea Zinc pointed out that it had already won a final victory in a separate injunction case related to the regular shareholders' meeting, confirming its legality and effectiveness.
Korea Zinc also emphasized that this decision is separate from the matter currently under review by the Fair Trade Commission. The company cited a previous Supreme Court ruling in another injunction case related to the regular shareholders' meeting, stating that it was difficult to view the acquisition of Youngpoong shares through SMH·SMC as a violation of the Fair Trade Act. Therefore, Korea Zinc argued that connecting this decision to potential violations of the Fair Trade Act is an unreasonable interpretation.
A Korea Zinc official said, "This decision only addresses past legal relationships and has no bearing on the effectiveness of the current management system or governance structure."
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It seems that Korea Zinc still hasn't settled things.
It's confusing...
▶ Source: https://news.nate.com/view/20260831n09988?mid=n0304
