Key Proposals:
- Appointment of a Transient Chair
- Complete Cancellation of Treasury Stocks
- Money Dividend of KRW 7,500 consistent with Regular Proportion & Reclassification of Discretionary Reserves
- Election of As much as 17 Administrators
SEOUL, South Korea, Feb. 20, 2025 /PRNewswire/ — MBK Companions and Younger Poong, the biggest shareholders of Korea Zinc, have officially submitted a collection of shareholder proposals forward of the corporate’s nearest annual common assembly (AGM) in March. The proposals deal with key governance and shareholder go back measures, together with (i) appointing a brief chair, (ii) canceling all treasury stocks, (iii) distributing a money dividend of KRW 7,500 consistent with regular percentage, (iv) reclassifying discretionary reserves to retained profits, and (v) electing between 5 and 17 administrators, considerably increasing the board. The primary proposal put ahead through Youngpoong-MBK Companions is the appointment of a brief chair.
Beneficial Governance: Name for a Transient Chair and Treasury Proportion Cancellation
MBK Companions-Younger Poong’s proposal for a brief chair is rooted in governance considerations following the disruption of Korea Zinc’s unusual common assembly (EGM) on January 23.
The cancellation of treasury stocks has additionally been prioritized. In spite of earlier population loyalty through Korea Zinc Chairman Choi Yun Beom to prohibit treasury stocks, the corporate has but to explode the cancellation of over 12% of its stocks, greater than 3 months next the expiration of the necessary gentle deal length.
A spokesperson for MBK Companions-Younger Poong mentioned, “There is a significant risk that treasury shares will be disposed of rather than canceled. The failure to honor public and legal commitments to cancel these shares could result in their sale to friendly shareholders or use for selective interests, ultimately eroding shareholder value and undermining Korea Zinc’s corporate governance.”
Bettering Shareholder Returns: Dividend Proposal and Monetary Transparency
As a part of its constancy to constant shareholder returns, MBK Companions-Younger Poong has proposed a money dividend of KRW 7,500 consistent with regular percentage for the 51st fiscal 12 months. Together with the intervening time dividend, the whole payout would quantity to KRW 17,500 consistent with percentage—underneath the KRW 20,000 consistent with percentage paid within the forty ninth fiscal 12 months. For the reason that Korea Zinc’s profits via Q3 2023 exceeded the former 12 months’s efficiency, the proposed dividend is predicted to fall snip of the payout ratio for the fiftieth fiscal 12 months.
Issues relating to monetary transparency have additionally been raised. On February 5, the past next the shareholder proposals have been submitted, Korea Zinc disclosed initial profits, reporting a fifteen.6% year-over-year build up in working benefit for 2024 however a 22.1% abate in internet benefit because of a fourth-quarter loss. The announcement cited non-operating losses of KRW 200-300 billion, a determine MBK Companions-Younger Poong considers inconsistent with operational efficiency. The shareholders plan to request additional rationalization in this discrepancy.
Board Restructuring Proposal: Conditional Growth to As much as 17 Administrators
MBK Companions and Younger Poong have proposed the appointment of unused administrators to ascertain an isolated {and professional} board at Korea Zinc. The choice of director appointments will probably be conditional at the end result of the continued injunction case in regards to the postponed of resolutions handed on the unusual common assembly (EGM).
If each Schedule 1-1 (cumulative vote casting) and Schedule 1-2 (board dimension cap of nineteen administrators) are suspended, MBK Companions and Younger Poong suggest appointing a complete of 14 administrators, together with 5 replacements for outgoing administrators and 9 supplementary unused administrators. The proposed applicants are:
- Non-executive Administrators: Sung-du Kang, Kwang-il Kim
- Separate Administrators: Kwang-seok Kwon, Myung-jun Kim, Soo-jin Kim, Yong-jin Kim, Jae-sub Kim, Hyun-chul Byun, Ho-sang Son, Seok-heon Yoon, Deuk-hong Lee, Chang-hwa Jung, Jun-beom Chun, Ik-tae Hong
If the injunction suspends best Schedule 1-2 (board dimension cap of nineteen administrators) month keeping up the validity of Schedule 1-1 (cumulative vote casting), MBK Companions and Younger Poong suggest appointing 17 administrators. The proposed applicants on this case are:
- Non-executive Administrators: Sung-du Kang, Kwang-il Kim, Jung-hwan Kim, Younger-ho Cho
- Separate Administrators: Kwang-seok Kwon, Myung-jun Kim, Soo-jin Kim, Yong-jin Kim, Jae-sub Kim, Hyun-chul Byun, Ho-sang Son, Seok-heon Yoon, Deuk-hong Lee, Chang-hwa Jung, Jun-beom Chun, Ik-tae Hong, Tae-sung Kim
If each Schedule 1-1 (cumulative vote casting) and Schedule 1-2 (board dimension cap of nineteen administrators) stay in impact, MBK Companions and Younger Poong suggest appointing 5 administrators to exchange the ones whose phrases have expired. The proposed applicants are:
- Non-executive Administrators: Jung-hwan Kim, Younger-ho Cho
- Separate Administrators: Tae-sung Kim, Yong-ho Shin, Chul-ki Kim
A consultant from MBK Companions-Younger Poong emphasised, “As the largest shareholder, we are committed to restoring governance integrity and protecting shareholder interests. We aim to establish an independent, professional board that will enhance both corporate and shareholder value.”
Loyalty to Restoring Company Integrity
MBK Companions-Younger Poong’s shareholder proposals mirror a broader aim to beef up company governance, monetary transparency, and shareholder price at Korea Zinc. Because the AGM approaches, the shareholders reaffirm their constancy to making sure a good, isolated, and shareholder-aligned board composition month advocating for clear monetary control and accountable capital allocation.
Touch
Seikyu Hong
[email protected]
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