Korea Zinc's labor union is escalating resistance against private equity firm MBK Partners' hostile takeover attempt, holding a joint press conference with the Homeplus union on January 30 at Gwanghwamun Plaza and lobbying lawmakers this month. The union intensified its campaign after a court decided to abolish Homeplus' rehabilitation procedure on the 3rd, citing the retailer's collapse as evidence of private equity risks. The union's cross-federation alliance with the Homeplus union breaks traditional organizational barriers within South Korea's labor movement, aiming to build public pressure against asset stripping and employment instability associated with private equity ownership.
Korea Zinc Union Forms Cross-Federation Alliance on January 30
Korea Zinc's union held a joint press conference with the Homeplus union on January 30 at Gwanghwamun Plaza to oppose MBK Partners' hostile merger and acquisition attempt. The Korea Zinc union, affiliated with the Federation of Korean Trade Unions, formed an alliance with the Homeplus union under the Korean Confederation of Trade Unions, breaking traditional organizational barriers between the two labor federations. The joint conference targeted asset sales and employment instability concerns associated with private equity entry.
![Korea Zinc and Homeplus unions hold joint press conference [Source: Korea Zinc Union]]()
Court Abolishes Homeplus Rehabilitation Procedure on the 3rd
A court decided to abolish Homeplus' rehabilitation procedure on the 3rd, confirming the retailer's path toward liquidation. MBK Partners acquired Homeplus and subsequently conducted asset sales including store disposals followed by lease-back arrangements. The retailer faced criticism for damaging employment conditions and operational capacity through store closures and workforce restructuring. The court ruling validated the union's warnings about private equity ownership risks through judicial determination.
Union Lobbies Progressive Party Lawmaker This Month
The Korea Zinc union visited Progressive Party lawmaker Jung Hye-kyung's office this month to expand its political engagement. The union emphasized that Korea Zinc faces similar risks to Homeplus if MBK's hostile takeover succeeds. The union warned that mass restructuring of suppliers and related vendors could threaten livelihoods and harm the national economy, urging lawmakers to implement strong regulatory measures against speculative capital.
![Korea Zinc Chairman Choi Yun-beom (second from left) tours the U.S. integrated smelter site [Source: Korea Zinc]]()
Shareholding Structure Creates Proxy Vote Dependency
Korea Zinc's management and union maintain unified opposition to the takeover, but the shareholding structure requires resolution through a shareholder meeting vote. Chairman Choi's family, Youngpoong, and the MBK Partners coalition are purchasing shares, though none can realistically exceed a majority stake. The National Pension Service and domestic and international institutional investors hold the casting vote, with their prioritization of stock prices and capital recovery over labor concerns representing the primary uncertainty.
Progressive Party Lawmaker Proposes Private Equity Restriction Bill
The ruling Democratic Party and opposition parties are forming a dialogue mechanism to regulate private equity corporate acquisitions. Progressive Party lawmaker Jung Hye-kyung proposed legislation restricting indiscriminate asset sales and workforce restructuring by private equity firms. Related forums and press conferences are scheduled to follow.
FAQ
What action did Korea Zinc's union take on January 30?
Korea Zinc's union held a joint press conference with the Homeplus union on January 30 at Gwanghwamun Plaza to oppose MBK Partners' hostile takeover attempt, forming a cross-federation alliance between the Federation of Korean Trade Unions and the Korean Confederation of Trade Unions.
What did the court decide about Homeplus on the 3rd?
A court decided to abolish Homeplus' rehabilitation procedure on the 3rd, confirming the retailer's path toward liquidation after MBK Partners' ownership led to asset sales, store closures, and workforce restructuring.
What legislation did Progressive Party lawmaker Jung Hye-kyung propose?
Progressive Party lawmaker Jung Hye-kyung proposed legislation restricting indiscriminate asset sales and workforce restructuring by private equity firms, with related forums and press conferences scheduled to follow.
