Korea Zinc: "We Will Enhance Corporate Value Together With Shareholders, Including Young Poong and MBK"

In Response to Young Poong's Criticism of "Privatizing Management Rights"

Korea Zinc Commits to Advanced Governance and Economic Security

Fulfilling Its Role in the Global Critical Minerals Supply Chain

Korea Zinc has announced its intention to continue smoothly advancing existing businesses, such as the Troika Drive and Project Crucible, while actively engaging in discussions and cooperation with major shareholders MBK Partners and Young Poong, amid the ongoing management rights dispute raised by Young Poong and MBK Partners.

The scene of the 53rd Extraordinary General Meeting of Shareholders of Korea Zinc. Provided by Korea Zinc

On September 28, Korea Zinc released a statement saying, "Now is the time for us to join forces for the enhancement of Korea Zinc’s corporate value and its future, for the benefit of all shareholders," adding, "We will fulfill our responsibilities for the nation’s key industries and the supply chain of critical minerals, and focus on sustainable growth and the enhancement of long-term shareholder value."

Previously, Young Poong and MBK Partners criticized Yoon Bum Choi, Chairman of Korea Zinc, for making significant investment mistakes over the past two years by investing in entertainment companies unrelated to the core business to defend his management control and by investing approximately 580 billion won in American electronic waste company Igneo Holdings. They also pointed out that Korea Zinc’s borrowings have surged as a result of the share buyback offer.

Korea Zinc responded by stating that these actions were part of business advancement. The company explained that, leveraging the competitiveness of its traditional smelting business, it is pushing forward with the Troika Drive initiative—expanding into secondary battery materials, resource recycling, and renewable energy—and that Project Crucible, building a new smelter in Tennessee, USA, is progressing without issue. Korea Zinc also emphasized that it has consistently strived to maintain competitiveness in its core business while improving transparency and accountability in management and the board of directors.

Korea Zinc commented, "We do not believe that good corporate governance can be achieved simply by making improvements at a single point in time," and emphasized, "It must be an ongoing process that involves listening broadly to shareholders’ opinions and steadily enhancing the independence, responsibility, and oversight of the board of directors."

Korea Zinc highlighted that it has continued to improve its governance structure by appointing an independent director as chairperson of the board, introducing a board competency matrix, and implementing independent board evaluations through external professional organizations, all to ensure responsible management. The company added that it is open to discussions with Young Poong and MBK Partners regarding the management rights dispute that has taken place over the past two years.

A Korea Zinc official stated, "The sustainable growth and enhancement of corporate value at Korea Zinc are goals to be shared not only by management, but also by all shareholders, including MBK Partners and Young Poong," and added, "We hope that Young Poong and MBK Partners, as key shareholders, will collaborate in fostering Korea Zinc’s sustainable growth, enhancing corporate value, and building a better future for the company."

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