SEOUL -- MBK Partners has clarified its position on a matter involving Korea Zinc, stating that the company is making claims that are far from reality. The matter dates back to May 2022, when a person known to be close to Chairman Choi Yoon-beom of Korea Zinc approached MBK Partners' Special Situations team, one of its investment management divisions, seeking investment.

MBK Partners addresses the matter to correct the record and set the facts straight.

· MBK Partners operates its investment management business through two primary divisions:

1. Buyout Division - Focused on acquiring controlling stakes in companies.
2. Special Situations Division - Specializing in minority stake investments, private debt, and other financial opportunities.

· The Buyout and Special Situations divisions are fundamentally separate entities within MBK Partners. These divisions are governed by a strict “Chinese Wall” policy, ensuring that there is no exchange of information between the two. This separation is rigorously enforced through compliance measures to maintain transparency and regulatory adherence. Each division operates with distinct investment targets and strategies.

· The Buyout Division of MBK Partners, which collaborated with Korea Zinc’s largest shareholder, Young Poong as a white knight, on the recent public tender offer, has no connection to the investment proposal made by a person known to be close to Chairman Choi in May 2022. Prior to the publication of Korea Zinc's allegations, the Buyout Division was unaware of this proposal or any materials received by the Special Situations team.

· Following the publication of these allegations, under MBK Partners compliance team’s review and approval, the Special Situations Division confirmed that the materials received from Korea Zinc were explanatory document about the Troika Drive, developed by the consulting firm BCG for Korea Zinc. These materials were largely identical to those publicly available on Korea Zinc’s website and in its IR materials. The investment discussion was closed without further action in June 2022.

· Korea Zinc’s claim that the Buyout Division may have used the Troika Drive documents in its public tender offer demonstrates a fundamental misunderstanding of MBK Partners' structure and practices. This claim is speculative and baseless, stemming from a lack of awareness about the firm’s operations and internal controls.