Korea Zinc to Announce Today on Withdrawal of Paid-in Capital Increase... Chairman Choi Yoon-beom to State Position

Emergency Press Conference on the 13th

Korea Zinc will hold an emergency press conference on the 13th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, to announce whether it will withdraw the rights offering. Chairman Choi Yoon-beom and President Park Ki-deok of Korea Zinc are scheduled to attend and make the announcement in person. This is the second time Chairman Choi has appeared in public since the 2nd of last month.

At the board meeting held that morning, Korea Zinc made decisions related to the rights offering. On the 30th of last month, Korea Zinc announced a large-scale rights offering plan to newly issue 3,732,650 common shares, equivalent to about 20% of the issued shares, at 670,000 KRW per share.

Choi Yoon-beom, Chairman of Korea Zinc, is speaking at the Korea Zinc press conference held on the afternoon of the 2nd of last month at the Grand Hyatt Hotel in Yongsan-gu, Seoul. Photo by Yonhap News

However, controversy arose as the company announced a rights offering plan with a conflicting nature immediately after conducting a public tender offer for its own shares. The Financial Supervisory Service judged that there was a possibility of 'insider trading' and launched an investigation, requesting Korea Zinc to submit an amended report on the 6th. In response, Korea Zinc stated on the 12th, "We will announce the final plan considering the authorities' demands and market reactions."

At this press conference, Chairman Choi is expected to directly explain whether the rights offering will be withdrawn and the reasons behind it. In particular, with a shareholder meeting vote battle against the Yeongpung-MBK Partners alliance becoming inevitable, he is also likely to reveal the company's stance on the management dispute and future plans.