Korea Zinc: "Some New Directors Requested by Youngpoong and MBK Have Legal Disqualifications"

Korea Zinc, which is in a management rights dispute with the Yeongpung·MBK Partners (MBK) alliance, held a board meeting on the 25th to deliberate on the request for convening an extraordinary general meeting of shareholders submitted by the Yeongpung·MBK alliance last month.

In a press release distributed after the board meeting, Korea Zinc stated, "We reviewed some candidates among the 14 director nominees requested by Yeongpung·MBK who have legal disqualifications," and added, "We will conduct additional reviews on the remaining candidates and finalize the timing of the extraordinary general meeting of shareholders."

The Korea Zinc board also expressed negative opinions regarding the executive officer system proposed by the Yeongpung·MBK alliance. Previously, on the 28th of last month, the Yeongpung·MBK alliance requested the convening of an extraordinary general meeting of shareholders to appoint 14 new directors and introduce the executive officer system.

Korea Zinc stated, "As of June, only a very small number of companies listed on the KOSPI market have an executive officer system," and added, "Applying the executive officer system may hinder management efficiency, make the responsibilities and roles of the executive officers somewhat ambiguous, and potentially lead to avoidance of accountability."

The Korea Zinc board plans to request the Yeongpung·MBK alliance to resolve the disqualification issues related to the appointment of new directors. After receiving a response from Yeongpung·MBK, a follow-up board meeting will be held to review the related matters and make a final decision on whether and when to hold the extraordinary general meeting of shareholders.

Meanwhile, Yeongpung·MBK has applied to the Seoul Central District Court for permission to convene the Korea Zinc extraordinary general meeting of shareholders. The hearing is scheduled for the afternoon of the 27th.