Korea Zinc’s Onsan smelter in Ulsan (Korea Zinc)
Korea Zinc’s Onsan smelter in Ulsan (Korea Zinc)

A coalition of Young Poong and MBK Partners has hired a major US law firm to lobby American policymakers in a bid to solidify its position amid Korea Zinc's intensifying takeover battle.

According to the lobbying disclosure reports filed with the US House of Representatives on Tuesday, Korea Corporate Investment Holdings, a special-purpose vehicle set up by Korea Zinc’s largest shareholders, Young Poong and private equity firm MBK Partners, recently registered Squire Patton Boggs as its lobbyist in the US.

The law firm, which has over 40 offices worldwide, operates one of the largest lobbying practices in Washington. The lobbying registration took effect Jan. 21, according to the filings.

The group’s lobbying agenda is described as “foreign investment in a critical minerals smelter in Tennessee,” referring to Kora Zinc’s plan to invest $7.4 billion to build a large-scale smelting facility for critical minerals in Clarksville, Tennessee.

Korea Zinc announced the project last December, with funding from the US government and other strategic investors, including JPMorgan.

The rare US-backed investment in a zinc refinery by a foreign company reflects Washington’s wider push to reduce dependence on China for critical minerals needed in the semiconductor, defense and aerospace industries.

But the investment decision has been criticized by the Young Poong-MBK faction, which argues that the project is intended to bolster Korea Zinc CEO Choi Yun-beom’s grip on the company by enlisting the US as a "white knight," rather than advancing its business interests amid an ongoing ownership battle.

The Young Poong-MBK coalition, which together holds about 46 percent of Korea Zinc’s shares, has been contesting Choi’s management authority since initiating a tender offer in September 2024.

Under these circumstances, some industry observers question the motive behind the pair's appointment of a new lobbyist.

Critics say the group may now be using lobbying channels in Washington to spread a narrative in Congress and the administration that there are problems with the Tennessee project.

“Young Poong-MBK were among the strongest opponents of the US smelter project from the beginning, even opposing during a board session and filing legal injunctions to block its implementation," said an industry official familiar with the matter. “It raises questions about whether the lobbying effort is aimed at finding problems in the project's process and putting the brakes on it."


sahn@heraldcorp.com