ISS Recommends Opposing Introduction of Focused Voting System by Korea Zinc... Supports Limit on Number of Directors

ISS, one of the world's two major proxy advisory firms, expressed opposition to the proposal to introduce a cumulative voting system ahead of the Korea Zinc extraordinary general meeting of shareholders.

According to industry sources on the 10th, ISS sent an agenda analysis report to domestic and foreign institutional investors on the 9th (local time) regarding the Korea Zinc extraordinary general meeting scheduled for the 23rd, stating opposition to the proposal to introduce a cumulative voting system.

ISS explained that while the introduction of a cumulative voting system is generally considered favorable to minority shareholders, it can have unintended consequences that dilute the impact of changes desired by dissenting shareholders.

However, ISS expressed support for the proposal put forward by Chairman Choi’s side to limit the number of directors to 19. ISS stated, "Limiting the board to 19 members under the current circumstances provides an opportunity to introduce meaningful changes."

Regarding the director appointment proposals from Chairman Choi’s side and Youngpoong’s side, ISS only supported the proposal to appoint four directors from Youngpoong. The director candidates recommended for approval by ISS include Kim Kwang-il, Vice Chairman of MBK Partners and candidate for Non-Executive Director, as well as outside director candidates Kwon Kwang-seok, former President of Woori Bank, Son Ho-sang, POSCO Distinguished Professor, and Jung Chang-hwa, former Director of POSCO Holdings Future Technology Research Institute.

ISS opposed the proposals to appoint seven directors from Korea Zinc and ten directors from Youngpoong.