Yeongpung and MBK Withdraw Injunction Request Prohibiting Korea Zinc's Disposal of Treasury Shares

Youngpoong, the largest shareholder of Korea Zinc, and MBK Partners withdrew their injunction application to prohibit the disposal of Korea Zinc's treasury shares on the 26th.

Youngpoong and MBK Partners had filed an injunction application with the Seoul Central District Court on the 13th, fearing that Korea Zinc might revive voting rights by contributing, lending, or transferring treasury shares to a third party around the record dates of the extraordinary and regular shareholders' meetings. The injunction sought to prohibit the disposal of 2,040,300 treasury shares (9.85%) acquired through a public tender offer on October 28.

A representative of Youngpoong and MBK Partners stated, "At the hearing on the 18th, Chairman Choi Yoon-beom's proxy repeatedly assured that no disposal actions other than cancellation would be taken regarding these treasury shares, and the court recorded this assurance in the hearing minutes. Although we could wait until the record date of the regular shareholders' meeting on the 31st to confirm whether any disposal occurs, considering that the assurance was made in the court's presence and explicitly noted in the hearing minutes, we judged that there will be no disposal by Chairman Choi's side in the future and decided to withdraw the injunction application prohibiting disposal."

According to Article 165 of the Capital Market Act and Article 176 of its Enforcement Decree, disposing of treasury shares within six months from the acquisition date is prohibited, and prohibited disposals include lending (loan transactions). Furthermore, since Korea Zinc acquired the subject treasury shares with the intention to cancel them, disposing of these shares without cancellation would not only violate disclosure regulations and constitute fraudulent unfair trading under the Capital Market Act (Articles 444 and 178) but also constitute an act of evading the treasury share system.