Tensions are escalating between the Chang and Choi families, the two key stakeholders in non-ferrous metals manufacturer Korea Zinc Inc., over the upcoming shareholder meeting for the company’s subsidiary Sorin Corporation. Sorin oversaw the export of non-ferrous products from Korea Zinc and Youngpoong, and is 49.97 percent controlled by Korea Zinc, 33.33 percent by the Chang family, and 16.67 percent by the Choi family.

Korea Zinc, a unit of bookstore conglomerate Youngpoong Group, was founded in 1949 by Chang Byeong-hee and Choi Ki-ho. The Choi descendants run Korea Zinc with other non-ferrous metal business units, while the Chang family manages overall group affairs and the electronics units.

While Korea Zinc is calling for an extraordinary shareholders’ meeting to secure control of Seorin, Youngpoong is refusing the demand, raising the possibility of a legal dispute.

According to sources on Monday, Korea Zinc recently requested Seorin’s board of directors to convene an extraordinary general meeting of shareholders.

Korea Zinc proposed to appoint four additional board directors at the shareholders’ meeting, including Steel Cycle President Choi Min-seok, a cousin of Korea Zinc Chairman Choi Yoon-beom, sources said.

Korea Zinc requested Sorin to convene an extraordinary board meeting on March 10th, 2024. But an extraordinary board meeting requested by Korea Zinc for March 14th did not take place as it did not meet the quorum requirement, with three Youngpoong members and a Korea Zinc member absent.

Industry watchers speculate that if this board meeting is delayed, Korea Zinc may seek court permission to convene an extraordinary general meeting directly.

Sorin’s board consists of seven members, including four representatives from Korea Zinc including Choi Chang-gul and Choi Chang-geun who are both honorary chairmen. If the four proposed directors are successfully voted into the board at the extraordinary meeting, Korea Zinc would solidify its control over Sorin by securing about three more seats.

But Youngpoong is pushing back, saying that it will take all possible measures to protect Sorin’s corporate value and prevent any harm to Youngpoong Group.

By Cho Yun-hee and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]