Regulator denies reporting MBK to prosecutors over Korea Zinc

MBK Partners teams up with Young Poong to win control of Korea Zinc

A senior Financial Supervisory Service (FSS) official on Thursday denied a report that the regulatory body has referred MBK Partners and Young Poong Corp. to prosecutors for an investigation into the allegations of using undisclosed consulting information on Korea Zinc for its takeover bid for the world’s No. 1 zinc smelter.

He said the media report, released on Wednesday, was groundless.

Meanwhile, another FSS official confirmed The Korea Economic Daily’s report that it had referred Korea Zinc Chairman Choi Yun-birm and its board of directors to prosecutors for a fast-track investigation concerning a planned 2.5-trillion-won ($1.7 billion) rights issue. The scrapped the rights offering in November amid a regulatory probe.

By Ik-Hwan Kim

lovepen@hankyung.com 

Yeonhee Kim edited this article.

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