Control of Korea Zinc, the world’s largest producer of zinc, is at stake in a battle challenging the country’s entrenched chaebol system of powerful conglomerates.The control of Korea Zinc, the world’s largest producer of zinc, is currently being challenged in a battle that is testing the country’s entrenched chaebol system. The company was established 50 years ago by two longtime business partners who agreed to an unusual division of power. The Choi family would manage the subsidiary, while the Chang family would run the parent company. This arrangement, known as “two families under one roof,” allowed Korea Zinc to become a major player in the global zinc market and a key contributor to South Korea’s economy.
However, the relationship between the two families has deteriorated, and now the descendants of the founders are engaged in a fierce fight for control of Korea Zinc. This feud has larger implications for South Korea’s biggest companies, as it tests whether the chaebols can coexist with Western-style corporate governance. At the center of the battle is a company of great geopolitical significance, as it is one of the few suppliers of critical metals that are not tied to China.
At a shareholder meeting on Thursday, the Choi family will try to maintain their management rights and resist a takeover attempt by Young Poong, which is still controlled by the Chang family. Young Poong has its own zinc-refining business, as well as a bookstore chain and electronics components makers.
According to The New York Times, the battle for control of Korea Zinc has broader implications for the country’s chaebol system and the role of family-run conglomerates in the global market. The outcome of this feud will also have an impact on the supply of critical metals and their importance in global supply chains. The shareholder meeting on Thursday will determine the future of Korea Zinc and the direction of the country’s business landscape.
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