[Featured Stock] FSC Begins Accounting Review...Korea Zinc Stock Price Slightly Declines

The stock price of Korea Zinc, which is currently undergoing a management rights dispute, is slightly declining.

As of 9:45 a.m. on the 16th, Korea Zinc was trading at 814,000 KRW on the KOSPI market, down 3,000 KRW (0.37%) from the previous trading day.

The day before, the Financial Supervisory Service (FSS) notified that it would begin an accounting review of Korea Zinc and Young Poong, which are involved in the management rights dispute.

First, Korea Zinc and Young Poong have conflicting claims regarding the sharp increase in debt ratio and impairment of investment stocks amid the management rights dispute. The FSS is expected to examine this issue through regular reports and other documents.

Korea Zinc points out that if the public tender offer and dividends proposed by MBK and Young Poong are executed, the debt ratio will surge to 400% in three years. On the other hand, MBK Partners counters that based on Korea Zinc’s public tender offer and future investment plans, the debt ratio will exceed 240% in six years.

Additionally, Young Poong claims that Chairman Choi Yoon-beom of Korea Zinc has infringed on shareholders’ interests since assuming the CEO position. They allege that Korea Zinc diluted the value of shares held by existing shareholders through third-party allotment rights offerings or treasury stock swaps with domestic and foreign companies during 2022?2023, thereby harming shareholders’ interests.