[Reporter’s Notebook] Korea Zinc’s 4,750 Shares That Stopped Shareholders’ Time

4,750 shares. Even less than 0.04% of the shares present at the temporary shareholders' meeting of Korea Zinc stopped the shareholders' time.

At the temporary shareholders' meeting held on the 23rd at a hotel in Seoul, Chairman Park Gi-deok opened the meeting in a perfunctory manner by striking the gavel three times without announcing the number of shares present. Due to duplicate proxy forms found in the shareholder register on site, the verification dispute that began around 10 a.m. continued until 4 p.m.

When shareholder meetings become socially sensitive issues, it often takes a long time to follow proper procedures. Until then, the shareholders present seemed to anticipate the situation, saying, "We might as well bring some snacks." They appeared to think that waiting a few hours was no big deal if it was for the company's development and transparent proceedings.

However, Korea Zinc offered excuses that were hard to believe. A company official explained, "We combined the Excel file prepared by the company with the files from Youngpoong and MBK, but errors kept occurring. We can't get accurate figures." Sighs broke out among the reporters listening via live broadcast in the media room on the second floor. It was unbelievable that a company possessing national core technology could not perform a simple calculation of subtracting duplicate shares from the total shares present even as the sun was high in the sky.

Some shareholders began to question whether Korea Zinc was employing other tricks or who they were waiting for. The company side only consistently responded by asking not to misunderstand. Eventually, the 4,750 shares that made shareholders wait for about six hours were invalidated. The number of shares present, which should have been disclosed at the opening, was only confirmed at 4:10 p.m., after reports emerged that companies classified as Chairman Choi’s friendly forces had decided not to attend the meeting.

The shareholders' meeting, which started after a long wait, turned into a petty pride battle between certain shareholders and the company. Chairman Park began by explaining the restriction of Youngpoong’s voting rights, and from then on, the meeting hall became a battleground of loud arguments. The shareholders' meeting, which should have been a session to carefully examine the company’s management policies and the qualifications of the board members, degenerated into a lecture on commercial law focusing only on the legality of voting rights restrictions and the application of commercial law to foreign companies.

The expressions of the previously relaxed small shareholders began to show earnestness. What was the hope of those who took the time to come? At least, they did not come just to listen to lawyers reading commercial law provisions. Now, the dispute between both sides seems likely to escalate into a legal battle. Korea Zinc must receive an official court ruling on the restriction of Youngpoong’s voting rights and preserve shareholders’ right to choose through discussions on clear management plans and the company’s vision.