SEOUL, November 18 (AJP) - The South Korean government designated Korea Zinc's high-nickel precursor technology as a "national core technology" on Monday amid the ongoing management dispute between the world's largest smelter and its major shareholders, Young Poong and MBK Partners.
National core technologies are crucial to a nation's economic and security interests. They are subject to strict government oversight to prevent their export and potential misuse. Companies holding national core technologies must obtain government approval before being acquired by foreign firms.
The Ministry of Trade, Industry and Energy has ruled that the precursor manufacturing technology, a critical component for secondary battery cathodes, meets the criteria for national core technology status.
The government's decision reflects Korea Zinc's claim of "protection of key national enterprises" against the attempt by Young Poong and MBK Partners to take control of the company's management.
Young Poong and MBK Partners have filed a lawsuit against Korea Zinc, demanding around 700 billion won ($515.7 million) in damages for alleged financial mismanagement. The claims are related to an overpriced stock buyback and a large public offering, amid the ongoing battle for control of Korea Zinc.
Korea Zinc was established in 1974 by Chang Byung-hee and Choi Ki-ho. The Choi family currently oversees the management of Korea Zinc, while the Chang family controls Young Poong and its electronics affiliates. The rivalry between the two families has escalated since Choi assumed the role of chairman in 2022.
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