Tensions Rise at Korea Zinc Shareholders' Meeting... Slight Delay Due to Duplicate Proxies

The start of the Korea Zinc extraordinary general meeting of shareholders was delayed by about 25 minutes due to procedural issues, including problems with duplicate proxy letters.

The Korea Zinc extraordinary general meeting was scheduled to begin at 10:00 a.m. on September 9 at the Mondrian Hotel in Yongsan, Seoul. However, the meeting did not start until 10:24 a.m. because procedures such as verifying duplicate proxy letters took longer than expected.

Such conflicts had also occurred during the regular shareholders' meeting in March this year. At the extraordinary shareholders’ meeting in January last year, the proceedings were delayed by more than four hours.

Officials from the Korea Zinc Labor Union stand holding pickets in front of the Mondrian Hotel in Yongsan, Seoul, where the Korea Zinc extraordinary general meeting of shareholders is held on the morning of the 9th. Photo by Bokyung Jang

At the scene of the shareholders' meeting on this day, proxy public relations battles were staged between the faction supporting Chairman Choi and the camp of Young Poong and MBK. About 30 members of the Korea Zinc Labor Union, affiliated with the Korean Metal Workers' Federation under the Federation of Korean Trade Unions, held a protest with pickets and banners starting an hour and a half before the meeting began. Targeting MBK Partners, they shouted, "If a private equity fund seizes control of national strategic industries, public industries, or vital sectors, it could end up like Homeplus in the future," and asked, "Who is the right person for employment stability, sustainable management, and protecting national strategic industries?"

One union member, Mr. Han (39), who left Ulsan at 2 a.m. and arrived for the meeting, said, "We expect that our side (Chairman Choi’s camp) will definitely win at least one of the auditor positions."

On the other hand, the Korea Zinc Small Shareholders Association hung a banner in front of the main entrance of the hotel that read, "A single vote from a minority shareholder protects Korea Zinc. Auditor must serve as the watchdog of the shareholders!"

On the morning of the 9th, a banner of the Koryo Zinc Small Shareholders Association was displayed in front of the Mondrian Hotel in Yongsan, Seoul, where the Koryo Zinc extraordinary shareholders' meeting was held. Photo by Bokyung Jang

The key issue at this shareholders' meeting is the appointment of an auditor. The Korea Zinc board of directors nominated Inkyu Baek, professor of Data Knowledge Service Engineering at Dankook University, while the Young Poong and MBK camp nominated Park Yukyung, former Asia-Pacific Head of Responsible Investment and Governance at APG Asset Management, as their respective candidates.

The main variable in the auditor vote is the so-called 3% rule. According to the revised Commercial Act, shareholders who own more than 3% of the company’s shares cannot exercise voting rights on the excess portion when appointing an auditor. The largest shareholder is also subject to the 3% limit, calculated by aggregating the shares owned by persons considered to be in a special relationship as defined by law.

Depending on the scope of who is considered a person in a special relationship, the prospects for Chairman Choi’s camp and the Young Poong–MBK camp differ significantly. This makes the votes of other important shareholders—such as Hanwha—relatively more important.

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