National Pension Service Supports Both Proposals
The shareholder meeting of Korea Zinc, where the Jang family who founded the company and the Choi family faced off, ended with an even split in victories for both sides.
At the Korea Zinc shareholder meeting held on the 19th at the Yeongpoong Building annex in Gangnam-gu, Seoul, which lasted over an hour from 9:45 a.m., the dividend opposed by the largest shareholder, Yeongpoong Co., Ltd., was approved, while the agenda to amend the articles of incorporation was rejected.
The proposed 5,000 KRW year-end dividend by Korea Zinc was approved with 62.74% in favor.
The proposal to amend the existing articles of incorporation, which restricts 'third-party allotment capital increase' to foreign joint ventures only, was rejected. Although 53.02% of attending shareholders voted in favor, surpassing the simple majority, it did not meet the criteria for a special resolution. Amendments to the articles of incorporation require a special resolution, meaning at least two-thirds of attending shareholders and one-third of the total issued shares must approve.
The National Pension Service, which held about 7.8% and played a casting vote role, supported both proposals. Chairman Choi’s direct stake is 1.75%, but including allied shares, it exceeds 33%. Yeongpoong Group’s stake was 32.27% as of the end of last year.
Shareholders attending the 50th regular general meeting of shareholders of Korea Zinc held at the Yeongpung Building Annex in Gangnam-gu, Seoul on the 19th. Photo by Choi Seoyoon
Previously, Jang Hyung-jin, an advisor to Yeongpoong, and Yeongpoong Co., Ltd. opposed the year-end dividend of 10,000 KRW and the restriction of 'third-party allotment capital increase' to foreign joint ventures at the board meeting, but their opposition was rejected. The next day, they issued a statement to the media, signaling a vote confrontation.
Korea Zinc also issued a rebuttal statement, and both sides continued their off-site disputes until the day before the shareholder meeting. Even the Korea Zinc labor union stepped in, urging, "Stop shaking Korea Zinc and focus on your own corporate management."
Earlier, the majority of domestic and international proxy advisory firms, including ISS, Glass Lewis, and the Korea ESG Institute, supported the dividend proposal.
On the day, Yeongpoong advisor Jang Hyung-jin and Korea Zinc co-CEO Choi Yoon-beom did not attend.
Yeongpoong Group was jointly founded in 1949 by the late founders Jang Byung-hee and Choi Ki-ho. The Jang family has managed the holding company Yeongpoong Group and its electronics affiliates, while the Choi family has managed Korea Zinc separately. When Choi Yoon-beom, grandson of founder Choi Ki-ho, was promoted and inherited management rights in 2022, the possibility of affiliate separation arose, and at the same time, the share competition with the Jang family intensified.
On the 19th, the 50th regular shareholders' meeting of Korea Zinc was held at the exterior of the Yeongpoong Building annex in Gangnam-gu, Seoul. Photo by Choi Seoyoon
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