Korea Zinc Launches Employee Stock Ownership Association... Strengthening Labor-Management Harmony

The labor union and management of Korea Zinc have agreed to establish an employee stock ownership association.

Korea Zinc announced on the 27th that it recently held a commemorative ceremony for the establishment of the employee stock ownership association, attended by about 20 labor-management officials including Moon Byung-guk, the union chairman, and Lee Jun-yong, the smelter manager. The employee stock ownership system is a system in which employees establish an employee stock ownership association to acquire and hold shares of their own company.

The establishment of the employee stock ownership association was proposed by the Korea Zinc labor union on the occasion of its 50th anniversary to boost employee morale and share management performance together, and a final labor-management agreement was reached. Both labor and management will also conduct promotional activities for the "Own Our Stock Campaign."

The Korea Zinc employee stock ownership association is open only to employees of Korea Zinc and its subsidiaries (Seorin Sangsa, KGX, KG Green Tech, K-Jam, Steel Cycle, Kemco). Registered executives, major shareholders, and related parties are excluded from eligibility.

Goryeo Zinc Union Chairman Moon Byung-guk (left) and Refinery Manager Lee Jun-yong
[Photo by Goryeo Zinc]

According to the regulations of the Employee Welfare Basic Act regarding the employee stock ownership system, the mandatory deposit period is one year. Tax benefits can be received for long-term holding. When employees pay the stock purchase price (minimum 50,000 KRW and maximum 500,000 KRW per month) to the employee stock ownership association, the company provides an additional interest-free matching amount in a 1+1 manner.

Union Chairman Moon Byung-guk said, "The more the employee stock ownership association is activated, the higher the employees' sense of ownership will be, creating a virtuous cycle where the company grows further. We will support the establishment of the employee stock ownership association centered on the union."

A Korea Zinc official stated, "We expect employee satisfaction to increase by sharing the company's management performance through employee stock ownership."