The Korea Zinc labor union has recently intensified its opposition to MBK Partners’ hostile takeover bid, seeking solidarity from the Federation of Korean Metalworkers’ Trade Unions (FKMTU) and the Federation of Korean Trade Unions (FKTU). In a significant meeting with representatives from both organizations, including FKMTU chairman Kim Joon-young and other key members, the union emphasized the urgency of rallying support against what it views as a threat not only to workers’ livelihoods but also to national economic stability.
Korea Zinc labor union chairman Moon Byung-guk made a passionate plea during the gathering, asserting that the takeover by a firm like MBK, which has faced widespread public criticism, would have devastating consequences for the workers. “If MBK takes control of Korea Zinc, we will consider every available measure, including strikes, to protect our jobs and workplace,” Moon stated.
The union emphasized that the issue at hand is not just a corporate battle for control but a direct threat to the workers’ security and their right to a stable life. In a recent survey of 2,000 Korea Zinc employees, 59.6% expressed concerns about job security, and 77.8% cited heightened psychological stress due to increased media scrutiny surrounding the hostile bid. These concerns have grown since MBK Partners and Young Poong initiated their takeover attempt in September, with many workers fearing job losses and financial instability.
The Korea Zinc union strongly criticized MBK’s track record, arguing that the private equity firm represents short-term, speculative capital that often results in the downsizing of operations and the extraction of profits at the expense of workers. The union pointed to MBK’s previous acquisition of Homeplus, which led to significant worker suffering due to asset sales, job cuts, and a focus on dividend payouts. The union argued that MBK’s style of management, characterized by aggressive cost-cutting and asset stripping, would undermine the stability and values that have made Korea Zinc a successful, harmonious company.
Korea Zinc’s labor representatives also highlighted the importance of taking a stand against the “predatory practices” of speculative capital, urging the FKTU and FKMTU to launch coordinated actions in defense of workers’ rights. They further submitted a formal petition to the FKTU, asking for their participation in the fight against MBK’s hostile takeover. In the petition, the union highlighted that MBK’s previous behavior has shown that they prioritize profits over people, leaving job destruction in their wake.
In addition to rallying the support of labor unions, Moon also took the issue to the political stage. He visited the National Assembly to request government intervention, emphasizing the potential national risks of a successful takeover. Moon appealed for sustained attention from political leaders, urging them to act in the national interest. The National Assembly has already discussed the issue during its government audit, with lawmakers from both ruling and opposition parties voicing their concerns about the consequences of MBK’s acquisition.
If MBK’s hostile takeover of Korea Zinc succeeds, there are fears that it could lead to major workforce reductions, strikes, and a disruption of essential metal production. Additionally, there are grave concerns about the potential transfer of Korea Zinc’s advanced technologies to China, which could result in significant losses to the national economy. As a response, Korea Zinc’s labor union met with the National Assembly’s Vice Speaker, Lee Hack-young, delivering a petition urging the cessation of the hostile bid. The union also called for the swift passage of the “National Pension Act Amendment,” which was proposed in July 2024 by a group of lawmakers, including Democratic Party representatives. This bill, which aims to mandate the inclusion of Environmental, Social, and Governance (ESG) factors in National Pension Fund investments, has become a focal point for the union’s campaign.
The Korea Zinc labor union’s request to the National Assembly stresses the importance of protecting key national industries from speculative capital, warning that MBK’s actions could set a dangerous precedent. The union also called for a proactive stance from the National Pension Service, urging them to take action to protect the company from being overtaken by short-term, profit-driven entities.
A representative from the Korea Zinc labor union stated, “The hostile takeover attempt by MBK has sparked widespread concern across various sectors, including politics, the local community, and labor organizations. We will not back down. We are prepared to take any action necessary, including general strikes and public solidarity, to prevent this takeover from succeeding and protect our industry and livelihoods.” The union remains steadfast in its opposition, fully committed to rallying national support and taking all measures to defend Korea Zinc from what they view as an existential threat.
