[Featured Stock] Korea Zinc Slightly Rises on FSC Intervention↑... Recovers to 1 Million Won

Korea Zinc, which is currently undergoing a management rights dispute, rose slightly to regain the 1 million won level.

As of 9:13 a.m. on the 1st, Korea Zinc was trading at 1,055,000 won, up 57,000 won (5.71%) from the previous trading day.

The Financial Supervisory Service (FSS) has put the brakes on Korea Zinc's large-scale paid-in capital increase, marking a new phase in the management rights dispute.

The FSS held a briefing the day before and announced that it would focus on investigating the legality of Korea Zinc's tender offer and paid-in capital increase. It has also launched an inspection of Mirae Asset Securities, the tender offer agent and lead manager of the paid-in capital increase.

The FSS is paying attention to the fact that Korea Zinc conducted corporate due diligence for the paid-in capital increase during the tender offer period, despite stating at the time of the tender offer filing that there would be no significant changes in its financial structure. If Korea Zinc had planned in advance to acquire and cancel treasury shares through borrowing and then repay the borrowings through the paid-in capital increase, it could be considered a false statement or omission of important facts in the securities registration statement.

According to the FSS, Korea Zinc's decision on the paid-in capital increase was finalized through the board of directors after Mirae Asset's corporate due diligence from the 14th to the 29th of last month. Korea Zinc conducted a tender offer for treasury shares from the 2nd to the 23rd of last month, which partially overlapped with the due diligence period.