Seoul court dismisses Young Poong's 837 billion won claim against Korea Zinc directors
A Seoul court rejected Young Poong Corp.'s shareholder derivative suit seeking 837 billion won in damages from Korea Zinc Co. directors.
Young Poong, a major shareholder of Korea Zinc, sued the company's board in November 2024, alleging a loss of 837 billion won from a tender offer that bought shares at 890,000 won each despite a market price near 560,000 won. The Seoul Central District Court ruled that the directors did not breach their managerial duties, finding the purchase steps lawful and consistent with the Commercial Act and the company's articles. The demand for damages was therefore dismissed.
Why it matters
The ruling clarifies the limits of shareholder derivative actions against Korean corporate directors.
In this story
shareholder lawsuitderivative suitdamagestender offershare pricemanagerial dutiesSeoul Central District Court
