Korea Zinc: Safeguarding National Interests Through Strategic Moves

Korea Zinc, the world's leading non-ferrous metal smelting company, is committed to protecting the nation's key industry corporation through the successful proceedings of the Extraordinary General Meeting (EGM). The company's management, along with its employees and labor unions, has been unwavering in their efforts to safeguard the company and contribute to the nation's economy.



The upcoming EGM is an opportunity for Korea Zinc to enhance shareholder value and improve corporate governance. Key measures include adopting a cumulative voting system, which allows shareholders to cast all of their votes for a single nominee for the board of directors when the company has multiple openings. This move is likely to protect the management rights of Chairman Choi Yun-beom, who is currently losing in the stake race against the MBK Partners-Young Poong coalition.

The acquisition of Young Poong Precision's shares by Sun Metals Corporation (SMC), a second-tier subsidiary of Korea Zinc, is a strategic move that bolsters the company's voting power and supports its management in fending off the hostile takeover attempt by MBK Partners and Young Poong. SMC acquired 190,226 shares, representing 10.3% of Young Poong's total issued shares, at a discounted price, benefiting from a 30% reduction from the January 21 closing price. This acquisition is legally valid under the Commercial Act, and the voting rights regulations will be newly applied, ensuring compliance with these regulations.



The government's designation of Korea Zinc's precursor technology as a national core technology has significant implications for the company's valuation and foreign investment prospects. The recognition of the technology's strategic importance and value can enhance Korea Zinc's valuation, as investors may perceive it as a more attractive investment opportunity. However, the designation may also make foreign investment in Korea Zinc more challenging, as potential acquirers may face stricter investment screening and regulatory hurdles.

In conclusion, Korea Zinc's commitment to protecting the nation's key industry corporation through the successful proceedings of the EGM aligns with its long-term growth strategy, Troika Drive, and its expansion into renewable energy, EV battery materials, and recycling. The company's strategic moves, such as adopting a cumulative voting system and acquiring Young Poong Precision's shares, strengthen its position and support its management in maintaining control of the company. The government's designation of Korea Zinc's precursor technology as a national core technology has potential implications for the company's valuation and foreign investment prospects, which the company must navigate to achieve its long-term goals.