SEOUL, South Korea, March 28, 2025 /PRNewswire/ -- Korea Zinc (KRX:010130) announced on March 28 that it has successfully concluded its annual general meeting (AGM), with the current management retaining board control in contention against MBK and Young Poong.

Korea Zinc's 51st AGM was held at Yongsan, Seoul. The participants in the meeting demonstrated strong support for the current management, underscoring the outstanding business performance and shareholder returns Korea Zinc has managed to continuously deliver upon.

Korea Zinc employees, key technical staff, labor unions, partner companies, and civil society groups in Ulsan have consistently voiced firm support for the current management. Public sentiment on assisting the current management had also grown rapidly, particularly due to the recent developments in Homeplus abruptly filing for corporate rehabilitation which drew close parallels to Korea Zinc's situation.

On the day of the AGM, Korea Zinc labor union members traveled from Ulsan to Seoul to stand in solidarity with the current management of Korea Zinc. Of particular note, the labor union of Homeplus also staged a protest in front of the venue, issuing warnings on the potential dangers of private equity firms.

Inside the AGM venue, many shareholders called for measures to protect the company from potential destabilization from outside influence. These concerns were able to gain traction as Korea Zinc is a core national industry that plays a vital role in resource security and the global strategic mineral supply chain.

Board Size Capped at 19, Enhancing Efficiency and Stability
At the AGM, Korea Zinc approved its consolidated and separate financial statements for the 51st fiscal year (2024). Shareholders also approved a cash dividend of KRW 7,500 per common share and resolved to transfer KRW 1.6689 trillion from discretionary reserves to retained earnings.

Additionally, five amendments to the company's articles of incorporation were addressed, including a cap on the number of board directors. Four key proposals were passed:

• Capping the number of directors at 19
• Appointing an outside director as board chair
• Changing the dividend record date
• Introducing quarterly dividends

The proposal to set a maximum of 19 board members was approved with over 70% support from voting shareholders. This move is expected to improve board stability and prevent inefficiencies in corporate decision-making. Leading global proxy advisory firms, including ISS, Glass Lewis, and Sustinvest, had previously unanimously recommended limiting board size to an appropriate level, aligning Korea Zinc's governance with global standards.

The proposal to appoint an outside director as board chair also gained strong shareholder support. This shift is expected to enhance governance independence and strengthen oversight, as an external director free from controlling shareholder influence will now preside over the board.

The introduction of quarterly dividends and the adjustment of the dividend record date mark another significant change. These measures will enhance dividend predictability and lay the groundwork for increasing corporate value.

Directors Appointed via Cumulative Voting for the First Time, Strengthening Compliance with Audit Committee Appointments

A vote over the agenda of appointing directors was also conducted at the AGM. Following the approval of an amendment to the articles of association, which set a cap on the number of directors, the agenda to appoint 8 directors through a cumulative voting system was presented, based on the new limit of 19 total directors. The cumulative voting system, adopted at the extraordinary general shareholders' meeting (EGM) in January, grants shareholders voting rights proportional to the number of directors being elected per share, focusing on enhancing the rights of minority shareholders and increasing the diversity of the board.

Consequently, 5 out of 8 director candidates recommended by Korea Zinc were appointed. The new board members include an internal director, CEO Park Ki-Deok, and external directors including Kwon Soon-beom (Managing Partner, Law Firm Sol), Kim Bo-young (Professor, Hanyang University Business School), James Andrew Murphy (Senior Advisor, Oliver Wyman), and Tammy Chung (Dean, Myongji University Business School).

The newly appointed members of the Audit Committee include Kwon Soon-beom (Managing Partner, Law Firm Sol), Lee Min-ho (Head of ESG Research Center, Yulchon Law Firm), and Seo Dae-won (Chairman, BnH Tax Corporation). It is expected that both Kwon and Lee will contribute to strengthening the board's compliance management system based on their extensive experiences in the legal field. Additionally, Seo is expected to provide advice on corporate taxation and capital transactions, helping to enhance accounting transparency with his background in roles such as Planning and Coordination Director at the National Tax Service, Director of Corporate Taxation, and Deputy Director.

A representative from Korea Zinc stated, "Many shareholders and citizens have strongly agreed that we must protect Korea Zinc, a key national industry, from takeover threats," and added, "We will continue to support South Korea's resource security and play a central role in the global strategic minerals supply chain, while doing our best to meet the expectations of shareholders and citizens."

 

Source: Korea Zinc Related Stocks: Korea:010130