Korea Zinc Reaffirms Legitimacy of Young Poong Voting Rights Restriction Following Supreme Court Ruling

"Distortion of Standard Advisory Contracts" Refuted

Highlighting Role in Critical Mineral Supply Chains

On May 26, Korea Zinc issued a statement announcing that the Supreme Court has acknowledged the legitimacy and validity of the measures restricting Young Poong's voting rights at the 2025 annual general shareholders' meeting.

Korea Zinc CI.

Korea Zinc explained, "Following the rulings in the first and second trials, the Supreme Court has also confirmed that the restriction on Young Poong's voting rights is lawful, and that it is not an illegal act intended to strengthen the personal control of management."

The company further asserted, "The Young Poong and MBK sides continue to distort even agenda items developed for minority shareholders and normal external advisory contracts, repeating politically motivated arguments. For the third consecutive year, hostile M&A attempts and dozens of lawsuits and injunctions have placed a burden on our management and corporate value."

Regarding the recent court order for document submission, Korea Zinc emphasized, "This is simply a standard evidentiary procedure in the litigation process to confirm the facts, and does not represent acceptance of Young Poong and MBK's assertions or any substantive judgment."

Korea Zinc also explained, "The external advisory contract was a standard arrangement aimed at facilitating the operation of the general shareholders' meeting, shareholder communications, and the review of shareholder-friendly policies. It was also utilized in the process of advancing shareholder-friendly initiatives such as the introduction of cumulative voting and the appointment of an outside director as chair of the board."

On the other hand, Korea Zinc argued that advisor Jang Hyungjin, along with Young Poong and MBK, are refusing to submit the management cooperation agreement that the court has ordered to be disclosed. The company stated, "Given that this contract is a key piece of evidence in a shareholder derivative suit worth 930 billion won, it must be submitted in order to resolve suspicions."

Korea Zinc added, "At a time when countries around the world are accelerating the establishment of critical mineral supply chains for national security, Korea Zinc is pursuing the expansion of gallium and germanium production and the U.S.-based critical minerals integrated smelting project, 'Project Crucible.' The continued distortion and unproductive disputes by Young Poong and MBK could result in damage to corporate and shareholder value."

This content was produced with the assistance of AI translation services.