South Korean court rejects request to block Korea Zinc share sale linked to US smelter

Group 1 - A South Korean court has rejected a request by major shareholders MBK Partners and YoungPoong to block Korea Zinc's plan to issue new shares for a $7.4 billion U.S. smelter project, allowing the project to proceed [1][3] - Korea Zinc plans to build a $7.4 billion critical minerals refinery in Tennessee, primarily funded by the U.S. government, to reduce U.S. reliance on China for essential materials [2][6] - The share issuance will involve selling $1.9 billion worth of shares to a joint venture controlled by the U.S. government and U.S.-based strategic investors, giving them approximately 10% control of Korea Zinc [3] Group 2 - Despite the court ruling, MBK Partners and YoungPoong expressed disappointment but intend to support the U.S. smelter project for mutual benefits [4] - Governance experts suggest that the U.S. smelter deal could benefit Korea Zinc Chairman Yun B. Choi, potentially shifting the power balance in his favor amid ongoing control disputes [5] - Korea Zinc's U.S. smelter project aligns with the U.S. strategy to diversify mineral supply chains and supports the company's growth ambitions in the critical minerals market [6]