The Korea Zinc (KRX:010130) labor union recently convened a meeting with the Federation of Korean Metalworkers' Trade Unions (FKMTU), a member of the Federation of Korean Trade Unions (FKTU), to request solidarity and support as the union expands its fight against the MBK Partners’ hostile takeover attempt.

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Moon Byung-guk, chairman of the Korea Zinc labor union (right), delivers a petition urging the cessation of hostile M&A to National Assembly Vice Speaker Lee Hack-young (left) at the main building of the National Assembly in Yeouido, Seoul on the 19th. (Photo: Korea Zinc Labor Union)

The meeting was joined by the Korea Zinc labor union chairman Moon Byung-guk, FKMTU chairman Kim Joon-young and other key members from both parties.

At the meeting, Moon strongly urged the FKTU and FKMTU for their support, stating, “If a company like MBK, which has been facing a lot of criticisms from society, takes control of Korea Zinc, our union will explore every possible measure to protect our workplace, including going on a strike.”

The Korea Zinc union stated that the Korea Zinc issue is not merely a fight for management control between two parties but a pressing matter threatening the workers’ job security and right to live.

In a recent employee survey of 2,000 employees (60% responded), 59.6% of the respondents stated they have been feeling unease about job security or have considered switching jobs. 77.8% of the respondents said that the constant media exposure and increased attention and scrutiny have caused psychological pressure and anxiety.

Since September, when MBK and Young Poong launched a hostile M&A bid, concerns about job insecurity among Korea Zinc employees and workers have intensified.

The union further criticized MBK stating “MBK epitomizes short-term speculative capital, notorious for acquiring companies in Korea, selling off prime assets, cutting jobs, and extracting profits through dividends—all while clashing with workers and earning social condemnation. Now, they aim to recklessly take over Korea Zinc, a stable company with solid management and harmonious labor relations.”

The union specifically referenced the Homeplus case, where MBK’s speculative management caused significant suffering among workers, as an example of the harm such practices inflict. They emphasized that the labor movement must no longer ignore the predatory practices of speculative capital like MBK. The union also called on the FKMTU and FKTU to launch strong solidarity actions.

Korea Zinc’s labor union officially submitted a petition to the FKTU, requesting their participation in the fight against MBK’s hostile M&A bid. The union appealed for strong solidarity and support, stating in the petition, “The labor movement must no longer overlook the predatory practices of speculative capital like MBK. Based on past examples, MBK has proven to be ‘bad capital’ that prioritizes profits over people, taking away jobs from the public.”

The union chairman Moon also visited the National Assembly to emphasize the need for active intervention from a national interest perspective. He urged the National Assembly and political leaders to maintain sustained attention and involvement in the matter.

Issues surrounding MBK’s hostile M&A attempt for Korea Zinc have been consistently raised in political circles, including during the National Assembly’s government audit. During this year’s audit, lawmakers from both ruling and opposition parties united in criticizing MBK’s actions. Concerns were raised that a successful hostile takeover by MBK could result in workforce reductions, union strikes, and subsequent disruptions in metal production. Additionally, there were warnings about potential damage to local economies and significant national losses if Korea Zinc’s core technologies were potentially transferred to China.

The Korea Zinc labor union (led by chairman Moon Byung-guk) met with the National Assembly Vice Speaker Lee Hack-young and delivered a formal petition urging the cessation of MBK’s hostile M&A bid. The union also called for the swift passage of the "National Pension Act Amendment," proposed by Democratic Party lawmakers in July, and emphasized the urgent need for government authorities and the National Assembly to resolve the matter promptly.

The amendment to the National Pension Act, which the Korea Zinc labor union is urging the National Assembly to pass, was proposed in July 2024 by 11 lawmakers, including Democratic Party Representative Park Hee-seong, Kim Young-jin, Jeong Joon-ho, Han Jeong-ae, Seo Young-kyo, and Lee Ki-heon. The bill's main content aims to mandate the Minister of Health and Welfare to consider ESG (Environmental, Social, and Governance) factors in all investments related to managing and operating the National Pension Fund, excluding welfare and loan projects or activities directly linked to the acquisition and disposal of assets for the fund's primary objectives.

The labor union also expressed its position, stating, "MBK's hostile takeover attempt of Korea Zinc requires active intervention by relevant authorities from the perspective of protecting national key industries." Additionally, they urged, "The National Pension Service should take a proactive stance on the Korea Zinc issue," and requested that the National Assembly "continue to pay attention to this matter."

A representative from the Korea Zinc labor union stated, "As speculative capital MBK attempts to take over Korea Zinc, a key national industry, concerns have been voiced from various sectors, including the political community, the local community, and labor organizations. This motivates us to push even harder. We will commit all efforts, including solidarity with our higher organizations and the public, as well as any sacrifices such as a general strike, to prevent this hostile takeover."

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