SEOUL, Oct. 22 (Yonhap) -- A court on Thursday ruled against Young Poong Corp. in a shareholder derivative lawsuit seeking 837 billion won (US$631 million) in damages from Korea Zinc Co. Chairman Choi Yun-beom and other company directors.
Young Poong -- a major shareholder in Korea Zinc -- had filed the suit in November 2024, claiming Korea Zinc's directors had inflicted losses of 837 billion won on the company by making a tender offer involving the purchase of its own shares at 890,000 won apiece, when the actual price was around 560,000 won.
The Seoul Central District Court ruled, however, that Korea Zinc's directors could not be deemed to have violated their managerial duties, given the steps they took before making the purchase.
It also ruled that the action did not violate the Commercial Act or the company's articles of incorporation.
This composite image shows the displayed company names of Young Poong Corp. (L) and Korea Zinc Co. (Yonhap)
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