Korea Zinc's Choi Yoon-beom, Third Letter Ahead of Temporary General Meeting... "Please Choose Verified Management"

Emphasizing Alignment with Shareholder Interests... "MBK and Yeongpung Are Not Allowed"

Choi Yoon-beom, chairman of Korea Zinc, sent a third letter to shareholders ahead of the extraordinary general meeting scheduled for the 23rd. In this letter, he emphasized the company's future vision and the current management's achievements, stressing the importance of the management's role in maximizing shareholder value.

According to Korea Zinc on the 1st, Chairman Choi appealed for shareholder support in the letter sent the previous day, stating that it is "an important occasion to decide who the management is that has proven performance and aligns with shareholder interests."

Korea Zinc Reveals Future Growth Plan... "MBK and Youngpoong Lack Vision and Expertise"

Earlier, Chairman Choi disclosed a concrete vision and plan for Korea Zinc's future growth.

Choi explained, "The current management has continuously achieved outstanding financial and operational performance," adding, "This reflects efforts to enhance shareholder value through a mid-to-long-term growth strategy called the 'Troika Drive.'"

Chairman Choi Yoon-beom of Korea Zinc is answering questions from the press at a Korea Zinc press conference held at the Grand Hyatt Hotel in Yongsan-gu, Seoul, on the afternoon of October 2 last year. Photo by Yonhap News

Chairman Choi pointed out that during the three months when MBK and Youngpoong attempted a hostile merger and acquisition (M&A), they failed to present any vision or business plan for Korea Zinc.

He said, "MBK and Youngpoong are solely focused on succeeding in the hostile M&A by spreading baseless slanders and false information about the current management of Korea Zinc," adding, "Their partnership raises many questions regarding corporate governance and management expertise."

"It Is Important to Align with Whose Shareholder Interests"

Chairman Choi repeatedly emphasized the importance of shareholder interests. He stated, "The current management's business activities and goals are entirely focused on maximizing shareholder value, and we are making our best efforts to protect the interests of shareholders and stakeholders, and will continue to do so."

On the other hand, he questioned whether MBK and Youngpoong would prioritize the interests of Korea Zinc shareholders over their own if they gained control of Korea Zinc.

Kim Kwang-il, Vice Chairman of MBK Partners (right), is answering questions from the press at a press conference related to MBK Partners' public tender offer for Korea Zinc held at Lotte Hotel in Jung-gu, Seoul, on the morning of September 19 last year. On the left is Kang Sung-doo, President of Young Poong. Photo by Yonhap News.

Referring to Youngpoong's 58-day suspension of operations starting at the end of next month, Chairman Choi said, "From Korea Zinc's perspective, this is an important opportunity to increase market share and boost sales and profits through rising zinc prices, but can Youngpoong really use this opportunity to maximize the interests of Korea Zinc shareholders?"

He continued, "Considering that Youngpoong itself is causing continuous and serious environmental and safety issues to the extent that its very existence is at risk, one cannot help but question how a strategic investor like Youngpoong can further improve and develop a world-class top-tier non-ferrous smelting company like Korea Zinc."

'Strengthening Board Independence and Diversity' 'Protecting Shareholder Rights'... Shareholder-Friendly Policy as a Winning Move

Chairman Choi promised to strengthen the independence of the board of directors and actively implement policies that protect minority shareholders and are shareholder-friendly.

Choi Yoon-beom, Chairman of Korea Zinc, is speaking at a Korea Zinc press conference held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, on November 13 last year. On that day, Chairman Choi stated, "I will step down from the position of chairman of the board as soon as possible, and an outside director will take over as chairman of the Korea Zinc board." Photo by Kim Hyun-min

Chairman Choi stated, "The current management of Korea Zinc firmly believes that corporate governance must be continuously improved," adding, "To faithfully implement this, Korea Zinc's board of directors has decided to propose shareholder-friendly and shareholder rights protection agendas at the extraordinary general meeting."

To this end, the following agendas will be promoted at this extraordinary general meeting: introduction of cumulative voting system, limitation of the maximum number of board members to 19, additional appointment of 7 outside director candidates, executive officer system, 10:1 stock split, protection of minority shareholders, separation of CEO and board chairman roles, change of dividend record date according to board resolution, and transition to quarterly dividend payments.

Chairman Choi emphasized, "The agendas for the shareholders' meeting are a firm promise from Korea Zinc's current board and management to remain devoted to the shareholders," adding, "By implementing the aforementioned agendas, Korea Zinc's current board and management hope to listen more closely to shareholders' voices and further guarantee and expand shareholders' rights."