The court's approval to convene the Seorin Sangsa shareholders' meeting is expected to accelerate Korea Zinc's acquisition of management rights over Seorin Sangsa.
On March 19th, shareholders are entering the 'Korea Zinc Annual General Meeting' held at the annex of Youngpoong Building in Gangnam-gu, Seoul. Photo by Jin-Hyung Kang aymsdream@
According to industry sources on the 20th, the Civil Division 50 of the Seoul Central District Court (Chief Judge Kim Sang-hoon) approved Korea Zinc's application to convene a shareholders' meeting. Earlier, after Seorin Sangsa's board meeting was canceled in March, Korea Zinc submitted an application to the Seoul Central District Court for permission to convene an extraordinary shareholders' meeting.
Seorin Sangsa is a Korea Zinc affiliate that distributes products produced by Korea Zinc and Youngpoong. Currently, Korea Zinc holds a 66.7% stake, Youngpoong holds 33.3%, and the management rights are held by Youngpoong.
Korea Zinc plans to propose at the extraordinary shareholders' meeting the appointment of three new inside directors, including a successor to Honorary Chairman Choi, and the reappointment of Honorary Chairman Choi Chang-geun. Currently, Seorin Sangsa's board consists of four members from Korea Zinc (Korea Zinc's Choi Chang-geol, Honorary Chairman Choi Chang-geun, Vice Chairman Noh Jin-soo, Vice President Lee Seung-ho) and three members from Youngpoong (Youngpoong Group Advisor Jang Hyung-jin, Seorin Sangsa's Jang Se-hwan and Ryu Hae-pyeong, representatives).
If the four Korea Zinc members succeed in entering the board, Korea Zinc will secure a majority of the seats and gain definitive management rights over Seorin Sangsa.
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