[Korea Zinc private equity fund incident] Experts say about the possibility of technology being leaked overseas, “Private equity funds will do whatever it takes to make money…there are no legal sanctions.”
Korea Zinc, Youngpoong, conflicting claims over concerns about overseas outflow Experts say, “Joining hands with private equity funds was wrong in itself” “Government interest and legal regulation in national key industries” The biggest concern both internally and externally in the management rights dispute between Korea Zinc and Youngpoong-MBK Partners is ‘whether technology will be leaked overseas.’ Even among experts, there are voices of concern, saying, “Private equity funds are a group that does everything if it makes money,” and “There is nothing we can do if it is sold overseas.” While pointing out the reality that legal measures against companies that have stolen national technology are weak, they also emphasize the importance of the technology possessed by Korea Zinc and argue that the government's attention is needed. According to the industry on the 29th, the possibility has emerged between Korea Zinc and Youngpoong-MBK Partners that if MBK acquires Korea Zinc in the future, it can sell it back overseas, and both sides are continuing their conflicting claims of 'yes' and 'no'. Korea Zinc's side claimed, "(Youngpoong-MBK) is highly likely to pursue active monetization by selling Korea Zinc's core technologies or sharing technology with overseas countries such as China," and added, "Considering MBK's speculative private equity nature of recovering investment, we will sequentially proceed with not only dividends from Korea Zinc in the future, but also sales of core assets and personnel restructuring." On the other hand, Youngpoong CEO Kang Seong-du declared at a press conference held on the 27th, "I will never sell the company that MBK Vice Chairman Kim Kwang-il and I own to overseas, including China." Experts are raising the view that Korea Zinc's concerns about this may become reality. Hwang Yong-sik, a professor of business administration at Sejong University, said, "The fact that MBK has a Chinese stake in itself shows a potential possibility (of going overseas)," and "Due to the nature of private equity funds, only money is needed. He claimed, “There are no such things as national resources, national secrets, or technology. If you look at Korea Zinc, there are clear signs of solidarity with partners and Hanwha, and there is a strong feeling of an original partner.” He added, “Because private equity funds are just a ragtag group of people, there is a possibility that it can be dangerous.” Jeong-Hyeon Wi, a business administration professor at Chung-Ang University, said, “It was wrong for Young Poong to join hands with a private equity fund.” “It’s like a poisoned chalice,” he said. He added, “It is highly likely that MBK requested information unfavorable to Youngpoong and Youngpoong accepted it,” adding, “After the merger and acquisition is successful, that will become a huge problem.” Ji Min-hee, an attorney at Daeryun Law Firm who specializes in corporate affairs, also said, “In fact, when private equity funds buy or sell companies, they do not care about key national industries. Structurally, it is unavoidable and it will not be important to them.” Experts say there is no way to do anything, especially when concerns become reality. point was pointed out. Attorney Ji Min-hee said, "There was a bill to amend the law to prevent private equity funds from leaking technology last year, but I understand that it is still difficult to realistically sanction it. And in fact, it is a leak, and it is difficult to be punished for this because it is buying and selling a company. This part of the law also needs to be revised more thoroughly." Son Seung-woo, director of the Korea Intellectual Property Research Institute, also said, "In the past, methods such as bringing in engineers from overseas were chosen, but these days, M&A. “In particular, there are many cases where private equity funds such as MBK are taking the lead,” he said. “However, there is no proper way to regulate this.” At the same time, he pointed out, "Korea Zinc is a very important company in terms of economic security as it is leading the way in the zinc and nickel fields, as well as secondary batteries and new and renewable energy. However, it seems that the National Assembly members and the Ministry of Trade, Industry and Energy still lack the awareness to protect it." Experts also mentioned problems that may arise during the process of sale, resale, and at least two acquisitions. Professor Kwon Jae-young of Kyung Hee University's Law School argued, "If MBK buys it and then sells it, management rights will be transferred once again. Management rights will change at least twice." He added, "We cannot guarantee the continuity of management and employment. No matter how much MBK tries to maintain employment, it will be sold once again later and what other companies will do with employment is another problem." Professor Kwon also said that this incident will serve as an opportunity to create a sense of crisis for other blue-chip companies as well. analyzed. Professor Kwon said, "If Korea Zinc, which has the largest market share in the world, is taken over by a private equity fund, it could send a signal that even companies with a solid market share like Korea Zinc will not be at ease." Meanwhile, on the 24th, Korea Zinc applied to the government for a ruling on whether the 'patented technology for processing high nickel precursor', a secondary battery material, is a national core technology. If the technology is determined to be a national core technology, the government will have the authority to approve mergers and acquisitions by foreign companies for economic security reasons. [View full article] - [Korea Zinc private equity fund incident] Experts say about the possibility of technology being leaked overseas, “Private equity funds do everything they can if they make money… There are no legal sanctions” (Shortcut)