Yeongpung "Application for Temporary General Meeting Permission of Korea Zinc... Board Reorganization"

Submission of Permit Application to Seoul Central District Court

Youngpoong announced on the 1st that it has submitted an application to the Seoul Central District Court for permission to convene an extraordinary general meeting of shareholders of Korea Zinc.

Youngpoong explained the reason for the application, stating, "On October 28, we lawfully requested the board of directors to convene an extraordinary general meeting of shareholders in accordance with the Commercial Act, but the company has yet to take any steps to convene the meeting. Two days after the request, the board decided on a large-scale paid-in capital increase. If this proceeds as planned, it could cause harm to existing shareholders and lead to changes in the company's shareholder composition and governance structure."

Earlier, Youngpoong and MBK Partners, who became the largest shareholders of Korea Zinc by acquiring an additional 5.34% voting stake through a public tender offer, had requested the convening of an extraordinary general meeting of shareholders to appoint 14 new directors and amend the articles of incorporation to introduce an executive officer system.

An MBK representative said, "The board of directors’ decision on the paid-in capital increase, which has caused losses to existing shareholders and thrown the market into confusion, clearly reveals how severely Korea Zinc’s governance has been damaged due to the arbitrary actions of Chairman Choi Yoon-beom. We request the court to consider these circumstances and promptly grant permission."