The Seoul High Court’s Civil Division 18-3 ruled on Friday against Young Poong in its suit to invalidate Korea Zinc’s new share issuance, finding the issuance was made within the scope necessary to achieve the company’s business purpose. In August 2023 Korea Zinc issued 1,045,430 new shares to HMG Global, an overseas affiliate of Hyundai Motor Group, giving the group about 5 percent of the company; Young Poong argued the third party allotment excluded existing shareholders and served to entrench incumbent management, and the suit became the trigger for the two sides’ management control dispute. The decision overturns the first instance ruling of June last year, which held that HMG Global could not be regarded as a foreign joint venture corporation and that the issuance violated Korea Zinc’s articles of incorporation.
Seoul appeals court upholds Korea Zinc share issue to Hyundai
The Seoul High Court ruled on Friday for Korea Zinc against Young Poong, holding that the August 2023 issuance of 1,045,430 new shares to Hyundai Motor Group affiliate HMG Global was made for a business purpose and is not invalid, overturning the first instance ruling.
Why it matters: The ruling removes a legal cloud over Hyundai Motor Group's roughly 5 percent stake in the world's largest zinc smelter and strengthens Korea Zinc's incumbent management in the control dispute with Young Poong that this lawsuit set off.
Data as of Yonhap report of November 13, 2026 (in Korean), read in full via the estate browser route; single source, carried at grade C. The court did not disclose its detailed reasoning in court, according to Yonhap. Developing item.
Sources
- Korea Zinc wins second instance lawsuit against Young Poong over new share issuance, first instance ruling overturned - Yonhap News Agency - 2026-11-13