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With the court's decision imminent regarding the provisional disposition filed by MBK Partners and Young Poong concerning KGC's third-party allocation of paid-in capital increase for investment in a steel mill in Tennessee, USA, both MBK and KGC continued their exchange of arguments on the 21st.

MBK and Young Poong released a press release stating, "It has been confirmed that an abnormal structure exists where the joint venture (JV) will retain 10% of KGC's shares even if the final joint venture agreement is not concluded regarding KGC's construction of a smelter in the U.S."

MBK and Young Poong raised concerns, arguing that the Business Framework Agreement (BAFA) signed between KGC and the U.S. side has no provisions regarding the effectiveness, recovery, or cancellation of new shares to be issued by KGC.

MBK and Young Poong criticized, "In typical joint ventures, new shares are issued after rights and obligations are clearly defined through a final agreement. However, in this case, new shares are being issued before the final agreement is signed, and the JV will acquire shares regardless of whether the contract is established. If the final agreement falls through, KGC will have no legal means to reclaim its shares, resulting in the dilution of shareholders' equity."

They added, "We are not opposed to KGC constructing a smelter in the U.S. itself. The problem is that the agreement imposes obligations solely on KGC, and there is no way to recover the allocated KGC shares regardless of the final agreement's conclusion."

MBK Partners CI. Provided by MBK Partners

KGC issued a rebuttal to these claims.

KGC retorted, "MBK and Young Poong are making baseless accusations based on the illogical assumption that the U.S. smelter construction will not proceed as planned, while emphasizing that they are the 'largest shareholders of KGC.' This is a clear fabrication."

They continued, "The scale of direct investment and financial support from the U.S. government, strategic investors, and large financial institutions for the construction of the U.S. steel mill is a staggering $6.76 billion (approximately 10 trillion won). The fact that the U.S. government and others will be responsible for 91% of the $7.4 billion (approximately 11 trillion won) to be invested in the smelter construction is intended to expedite the smelter construction and create a sustainable operating structure."

KGC criticized, "MBK and Young Poong are not considering at all that KGC is being asked to play various roles in the international political landscape, national interests, and the advancement of cutting-edge industries, and that it can secure opportunities for sustainable growth. They are repeatedly making malicious attempts to lose this golden opportunity to preempt the U.S. market, the world's largest market for critical minerals, driven solely by their obsession with seizing control of the board."

KGC stated, "This investment will ultimately bring benefits to all shareholders and significantly contribute to economic security."