Korea Zinc Reports Operating Profit of 736.1 Billion KRW Last Year, Up 11.5% Year-on-Year

Despite 100 Consecutive Quarters of Profit, Net Income Drops 60%
Lawyer Hwang Deoknam Appointed as Board Chairman

Korea Zinc announced on the 5th that its consolidated operating profit for last year was tentatively estimated at 736.052 billion KRW, an increase of 11.5% compared to the previous year.

Sales amounted to 12.0828 trillion KRW, up 24.5% from the previous year, while net profit decreased by 59.6% to 215.531 billion KRW.

Choi Yoon-beom, Chairman of Korea Zinc, is speaking at a Korea Zinc press conference held on the 13th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. On this 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

Although sales reached an all-time high, net profit declined due to increased borrowings in the fourth quarter of last year amid a management rights dispute with Youngpoong·MBK Partners (MBK alliance).

The company also stated, "Since the fourth quarter of last year, domestic and international uncertainties have expanded, causing temporary foreign exchange losses and increased financial costs due to fluctuating exchange rates, resulting in a negative net profit."

Operating profit in the fourth quarter of last year was 132.8 billion KRW, down 32.9% from the same period the previous year, while sales during this period increased by 42.6% to 3.4426 trillion KRW.

Korea Zinc explained, "Despite recording operating profit in the fourth quarter of last year, achieving the milestone of 100 consecutive quarters of profitability, the company is partially offsetting negative impacts such as overall demand contraction due to economic recession and declines in non-ferrous metal prices and smelting charges (TC) through increased sales."

Meanwhile, Korea Zinc held a board meeting on the same day and appointed an outside director as the chairman of the board for the first time since its founding. The new board chairman is lawyer Hwang Deok-nam. Chairman Choi Yoon-beom, who had previously served as the board chairman, will remain as a regular director.

A Korea Zinc official said, "The agenda to appoint an outside director as the board chairman, which Chairman Choi Yoon-beom had promised to improve governance and strengthen board independence, was passed at the extraordinary general meeting of shareholders in January, and thus the new chairman Hwang was appointed at this board meeting," adding, "This marks a turning point in advancing governance and further strengthening the independence of the board."