Korea Zinc, the world leader in lead and zinc smelting, said it obtained approval from South Korea’s ministry of trade, industry and energy for the designation for its precursor manufacturing process as a national core technology and advanced industrial technology.
The company said domestic battery companies have been relying almost exclusively on China for cathode active materials, including precursors. According to the Korea Trade Insurance Corporation, 97% of domestic precursor imports came from China, raising significant concerns for economic security, it said.
The designation comes during a rising dispute over the management of Korea Zinc. Young Poong, the smelter’s largest shareholder, has joined with private equity firm MBK Partners to purchase more shares in Korea Zinc to acquire a controlling stake. To resist the bid, Korea Zinc chairman Choi Yun-birm partnered with US private equity firm Bain Capital.
MBK welcomed the government’s designation of Korea Zinc’s precursor as a national core technology. It said it has no plans to sell Korea Zinc’s stake to foreign interests to realise investment gains.
Korea Zinc has reportedly angered shareholders by announcing a rights issue, in which it planned to buy its own shares to bolster control. But it would be on borrowed money, paid back by shareholders. It has since cancelled the issue.
