The Korea Exchange has announced its intention to designate Korea Zinc as a non-compliant disclosure corporation after the company withdrew its decision on a paid-in capital increase.
According to the Korea Exchange on the 22nd, this measure follows Korea Zinc's reversal of its disclosure by withdrawing the paid-in capital increase decision on the 13th.
On the 30th of last month, Korea Zinc disclosed that it would newly issue 3,732,650 common shares, nearly 20% of the total issued shares after treasury stock cancellation, through a general public offering at 670,000 KRW per share.
The market criticized Korea Zinc for suddenly announcing a paid-in capital increase, which was contradictory, right after it had publicly tendered its treasury shares at 890,000 KRW per share to enhance shareholder value amid a management dispute.
On the 6th, the Financial Supervisory Service intervened, stating that Korea Zinc's general public offering decision could cause significant misunderstanding among investors and ordered a correction of the securities registration statement. The company withdrew the paid-in capital increase decision within a week.
If designated as a non-compliant disclosure corporation, penalty points and fines will be imposed, and if penalty points accumulate, the company may be designated as a management item. If similar cases recur after being designated as a management item, the company may be subject to delisting review.
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