[Column] The No-Winner Battle Between Korea Zinc and Young Poong

The Korea Zinc shareholders' meeting held on the 19th lived up to its reputation as a "much-anticipated event." From early dawn, over 20 reporters and broadcasting cameras were stationed near the Yeongpoong Building in Gangnam, Seoul, the venue of the meeting. They came to witness the showdown between the Choi family of Korea Zinc and the Jang family of Yeongpoong, the largest shareholder, who had been engaged in a fierce battle outside the venue for an entire month.

The meeting proceeded in a relatively quiet atmosphere for an hour and a half. A representative from Yeongpoong read out their opposition to Korea Zinc's dividend proposal and amendments to the articles of incorporation. No other shareholders spoke. Security was tight. When shareholders entering the venue were asked in interviews, "What do you think about the dividend proposal and the amendments to the articles of incorporation?" they all remained tight-lipped. It was a moment when the spirit of partnership between the two families, which had lasted over 70 years, reached its limit.

Both sides had openly disparaged each other until then. Last month, Yeongpoong issued a statement to the media opposing the dividend proposal and amendments to the articles of incorporation raised at Korea Zinc's board meeting, calling them "damaging to shareholder value." Korea Zinc responded with a rebuttal statement, deepening the conflict.

Even until the day before the shareholders' meeting, Yeongpoong distributed materials criticizing Korea Zinc. These claimed that Korea Zinc suffered huge losses by investing in a private equity fund involved in allegations of stock price manipulation of Kakao's SM Entertainment. The tension continued until the day of the meeting. Yeongpoong released a press release about the rejection of the amendments before the meeting ended, and Korea Zinc said, "There is a code of conduct, but this is just too much."

Judging by the results alone, the meeting was anticlimactic. As the market expected, the dividend proposal was approved in favor of Korea Zinc, and the amendments to the articles of incorporation, which require a special resolution and are difficult to pass, were settled as Yeongpoong desired.

However, the embers of conflict only grew. The two families within Yeongpoong Group were busy revealing each other's weaknesses externally over the past month. When hearing Yeongpoong's claim that Korea Zinc suffered losses from investing in a private equity fund, one thought, "They don't even have the loyalty to protect the value of their affiliates."

In fact, there was no clear winner. This shareholders' meeting only added weight to the expectation that the 75-year partnership history between the Jang and Choi families would come to an end.