Supreme Court rules Korea Zinc's SMC-based restriction of Young Poong's voting rights 'unlawful'

The Supreme Court upheld a lower court ruling that Korea Zinc unlawfully restricted the voting rights of its largest shareholder, Young Poong, in a decision that could affect the fair trade watchdog's ongoing review of the smelter, observers said Monday. In a ruling issued Friday, the Supreme Court upheld the lower court's finding that Sun Metals Corp. (SMC), Korea Zinc's Australian affiliate, does not qualify as a subsidiary under the Korean Commercial Act. The top court found no error in the lower court's conclusion that SMC cannot be regarded as the same as, or most similar to, a stock company under Korean law. The dispute centers on Korea Zinc's use of SMC ahead of its extraordinary shareholders meeting in January 2025. Shortly before the meeting, SMC acquired about 10 percent of Young Poong's shares. Korea Zinc then argued that the resulting cross-shareholding relationship allowed it to restrict Young Poong's voting rights at the meeting. The court's ruling effectively rejected the legal basis for that move, Young Poong and MBK Partners said. The alliance described the decision as a