[Special Stock] Youngpoong Slightly Rises on News of Activist Fund's Shareholder Proposal↑

Youngpoong Corporation's stock price rose slightly.

As of 9:30 a.m. on the 26th, Youngpoong was trading at 440,000 won, up 12,000 won (2.8%) from the previous trading day.

The day before, an activist fund made a shareholder proposal to Youngpoong, which is in a management rights dispute with Korea Zinc, on the grounds of restoring shareholder value.

Must Asset Management, which holds 2% of Youngpoong's shares, publicly presented "Suggestions for Enhancing Shareholder Value and Improving Corporate Governance" to Youngpoong under the name of CEO Kim Dooyong.

CEO Kim Dooyong pointed out in the proposal that "Youngpoong's market capitalization is about 711 billion won, which is only 0.14 times its actual net asset value (5 trillion won)," adding that "this is the lowest level in the Korean stock market."

He also added, "90% of Youngpoong's net assets consist of Korea Zinc shares and buildings in central Seoul," and "despite the very high quality of these assets, it is effectively traded at the cheapest price in the Korean stock market."

Assuming the Korea Zinc shares currently held by Youngpoong are valued at 660,000 won per share, this amounts to about 3.5 trillion won, which accounts for 70% of Youngpoong's actual net assets.

Must Asset Management made three major demands to enhance Youngpoong's corporate value.

First, the complete cancellation of treasury shares. Must Asset Management pointed out that while Youngpoong strongly criticized Korea Zinc's treasury share policy, it has not canceled its own treasury shares amounting to 6.62% for over 10 years.

CEO Kim Dooyong said, "(Seeing the non-cancellation of treasury shares) I understood why Youngpoong is traded at the cheapest price compared to its liquidation value in Korea," and requested, "Please cancel all currently held treasury shares and add a provision regarding treasury share cancellation to the articles of incorporation at the general meeting of shareholders."

Must Asset Management also ordered Youngpoong to disclose information about the put option (the right to sell) on Korea Zinc shares that Youngpoong signed with MBK Partners to acquire management rights of Korea Zinc.

Must Asset Management also demanded a bonus issue or stock split, revaluation of investment real estate assets, and value-up disclosures. They set the deadline for a response as the 29th and warned that if Youngpoong misses the deadline, they will take full action.

CEO Kim Dooyong stated, "If there is no response by the 29th, we will have no choice but to make our best efforts to improve the current situation."

In response, Youngpoong said, "We fundamentally agree broadly with shareholder proposals aimed at enhancing company value," adding, "Must Asset Management's proposal is a matter that could significantly affect the stock price and investors' investment decisions, and we will reflect parts that can be incorporated through proper internal procedures."