Korea Zinc Cancels Planned Paid-in Capital Increase... "Humbly Accept Market and Shareholder Concerns"

Resolution to Withdraw Paid-in Capital Increase at Board Meeting on the 13th
Listening to Market and Shareholder Concerns, Outside Directors Hold Separate Deliberation
"We Will Do Our Best to Win the Shareholders' Meeting Vote"

Chairman Choi Yunbeom to Announce Position in the Afternoon

Korea Zinc withdraws its rights offering.

Korea Zinc announced on the 13th that it resolved to withdraw the general public rights offering at an extraordinary board meeting held in the morning.

Korea Zinc explained the background, saying, "When we resolved to proceed with the general public rights offering, we had not anticipated the concerns raised by shareholders and market stakeholders, which we have continuously listened to and humbly accepted. After an independent deliberation process centered on outside directors, we ultimately reexamined the agenda and decided to withdraw it."

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

On the 30th of last month, Korea Zinc had announced a large-scale rights offering to newly issue 3,732,650 common shares, equivalent to about 20% of the issued shares, at 670,000 KRW per share. However, right after the public tender offer for treasury shares, the announcement of a rights offering with an opposing nature prompted the Financial Supervisory Service to launch an investigation, citing "potential for unfair trading," and on the 6th requested Korea Zinc to submit an amended report.

Regarding this, Korea Zinc bowed its head during the recent Q3 earnings conference call, stating, "Such market reactions and changes in circumstances were difficult to fully predict when we initially pursued the general public rights offering."

Although the rights offering is withdrawn, Korea Zinc plans to devote full efforts to winning the management rights dispute with MBK Partners and Young Poong. Korea Zinc explained, "At the shareholders' meeting, our position is that shareholders will make wise judgments and decisions considering the company's long-term competitiveness and vision, as well as the necessity of future business cooperation, rather than short-term investment returns."

Meanwhile, Choi Yoon-beom, Chairman of Korea Zinc, is scheduled to hold a press conference in the afternoon at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, to directly state his position.

A Korea Zinc official said, "We will communicate more actively with institutional investors, minority shareholders, partners, market stakeholders, and the public, listen to opinions with a humble attitude, and garner support. Through this, we will make every effort to win at the shareholders' meeting."