Two families, in business for 50 years, fight for control of Korea Zinc

When two longtime business partners established a subsidiary 50 years ago to produce zinc from an industrial complex set up by the South Korean government, they opted for an unusual distribution of power.

The new company, Korea Zinc, would be managed by the Choi family. The existing parent company, Young Poong, would be run by the family of the other founder, the Chang family. The two clans agreed to respect each other’s management. This arrangement became known as “two families under one roof.”

Korea Zinc has become the world’s largest producer of zinc and a vital cog in the South Korean economy.

But today, the relationship between the Chois and the Changs has broken down dramatically. The descendants of the two founders, who died several decades ago, are engaged in a fierce struggle for control of Korea Zinc.

The feud has broader implications for South Korea’s biggest companies, testing whether powerful family conglomerates, known as chaebols, can coexist with Western-style corporate governance. At the center of the battle is a company of great geopolitical importance, one of the few suppliers of essential metals to global supply chains without ties to China.

At a general meeting on Thursday, the Choi family will seek to retain management rights to Korea Zinc and fend off an attempted takeover of Young Poong, still controlled by the Chang family. Young Poong has his own zinc refining company as well as a chain of bookstores and electronic component manufacturers.