Seoul: Korea Zinc Co.'s high-nickel precursor manufacturing process has been designated as a national core technology by the government, a move that comes amid a heated management struggle for control over the world's largest refined zinc producer, the company announced on Monday. According to Yonhap News Agency, Korea Zinc has been engaged in a protracted battle to thwart a takeover attempt by its largest shareholder, Young Poong Corp., alongside private equity fund MBK Partners Ltd. This takeover effort was initiated by Young Poong on September 13, when they launched a tender offer to acquire an additional stake in Korea Zinc. In a strategic countermeasure, Korea Zinc executed a significant stock buyback and petitioned the government to recognize its high-nickel precursor technology as a national core and high-tech strategic asset, as a company spokesperson communicated via phone. The designation ensures that any acquisition of Korea Zinc by a foreign entity would require government approval, effectively safeguarding it for economic and security reasons. Both Korea Zinc and Young Poong have expressed approval of the government's decision. Korea Zinc emphasized in a statement that official recognition of the potential adverse effects of technology leaks involving its high-nickel precursor processing underscores the importance of protecting this technology for the Korean economy. Young Poong, as the largest shareholder, reiterated its commitment to preventing the smelter's core technologies from being exposed to foreign companies. This governmental decision follows Korea Zinc's recent withdrawal of a 2.5 trillion-won (approximately US$1.8 billion) share sale plan, which had been challenged by the Financial Supervisory Service due to a perceived lack of transparency in the decision-making process that could disadvantage existing shareholders. The rights issue was largely viewed as part of Korea Zinc's strategy to secure additional treasury stocks with voting rights to strengthen its position in the takeover con flict against Young Poong. Presently, Young Poong and MBK hold a combined 39.83 percent stake in Korea Zinc, while Korea Zinc Chairman Choi Yun-beom and associated parties possess a 35.4 percent stake in the company. With backing from Bain Capital, Korea Zinc intends to convene a shareholders meeting within the year to resolve the ongoing battle, concentrating efforts on garnering support from institutional investors such as the National Pension Service and smaller shareholders. The company is expected to leverage its new status, underpinned by state recognition, to protect vital industries and secure further backing at the upcoming shareholders meeting. High-nickel precursors play a pivotal role in the production of battery cathodes, which are integral components in electric vehicles and energy storage systems.