Korea Zinc Inc., the world's largest zinc smelter, has applied to the government for the designation of its technology as a national core technology, in an apparent move to fend off a potential takeover by Young Poong Corp. and MBK Partners, industry sources said Wednesday. According to the sources, Korea Zinc has recently submitted an application to the Ministry of Trade, Industry and Energy to designate its technology as a national core technology, a status funded by the state to protect vital industries. Under the Act on Prevention of Divulgence and Protection of Industrial Technology, companies with this designation require government approval for any foreign acquisition, safeguarding them for economic and security reasons. If approved, the government could intervene in future foreign mergers and acquisitions, potentially altering the control dynamics at Korea Zinc. This move comes amid a fierce management battle between Korea Zinc and a coalition of its largest shareholder, Young Poong, and private equity firm MBK Partners. The coalition recently launched a tender offer to acquire up to a 14.6 percent stake in Korea Zinc, investing 2 trillion won (US$1.5 billion). They argue that Korea Zinc's current management has weakened the company's financial health. MBK Partners has denied plans to sell Korea Zinc to Chinese investors following the acquisition. But Korea Zinc has said it will make the utmost efforts to outbid Young Poong and MBK Partner's tender offer, calling the move "a hostile takeover bid." Source: Yonhap News Agency