Glass Lewis Supports All Shareholder Meeting Proposals Proposed by Korea Zinc

19th Korea Zinc Annual General Meeting
"Yeongpung Side's Claim of Shareholder Rights Violation Unfounded"

Ahead of the Korea Zinc shareholders' meeting on the 19th, Korea Zinc and Yeongpung are engaged in a fierce off-market battle, while the global proxy advisory firm Glass Lewis has issued a recommendation to support all Korea Zinc proposals.

Korea Zinc announced on the 15th that Glass Lewis recommended a favorable opinion on Korea Zinc's agenda item 2-2 at the shareholders' meeting, titled 'Incorporation of Stock Issuance and Allocation into the Standard Articles of Incorporation.' Glass Lewis also recommended approval for agenda item 1, 'Approval of Consolidated and Separate Financial Statements (Including Appropriation of Retained Earnings),' which includes a proposed year-end dividend of 5,000 KRW, as well as agenda item 2-2 for amendments to the articles of incorporation.

Previously, Yeongpung, the largest shareholder of Korea Zinc, declared it would contest the shareholders' meeting vote, arguing that the year-end dividend and articles of incorporation amendment proposals could harm shareholder interests.

Korea Zinc stated, "With Glass Lewis siding with Korea Zinc, Yeongpung's claim of 'protecting shareholder interests' has lost credibility," adding, "Especially as Glass Lewis recommended approval of the dividend proposal put forth by Korea Zinc, interpretations that Yeongpung's call for increased dividends serves not Korea Zinc shareholders but the Yeongpung management, which has been suffering chronic deficits, are gaining traction."

Overview of Korea Zinc Onsan Smelter [Photo by Korea Zinc]

Glass Lewis is a global proxy advisory firm whose recommendations are referenced by foreign and institutional investors when exercising voting rights. With Glass Lewis's recommendation to approve, it is expected that overseas and institutional investors will also support all key agenda items at the Korea Zinc shareholders' meeting.

Korea Zinc, a core affiliate of the Yeongpung Group, was founded by the late founders Ki-ho Choi and Byung-hee Jang. The Choi family operates Korea Zinc, while the Jang family manages Yeongpung Group and its electronics affiliates under an 'independent management system.'