#South Korea #Seoul #AGM Results #Korea Zinc #shareholder support

Korea Zinc Successfully Concludes AGM

On March 28, 2025, Korea Zinc held its 51st annual general meeting (AGM) in Yongsan, Seoul, where shareholders showed significant support for the current management team. This AGM was crucial for the company's governance, especially given challenges posed by investment firms such as MBK and Young Poong. The meeting highlighted the company's strong performance and commitment to shareholder returns, emphasizing the importance of protecting an organization that plays a pivotal role in South Korea's resource security and the global strategic mineral supply chain.

Strong Support for Current Management

The AGM witnessed participation from employees, labor unions, partner companies, and civil society groups, all of whom expressed their unwavering backing for the current leadership. This endorsement was particularly timely as sentiment shifted in favor of the existing management due to recent corporate tensions regarding competitor Homeplus, which faced its own difficulties that mirrored some of Korea Zinc's challenges. Labor union members journeyed from Ulsan to Seoul to demonstrate their solidarity, emphasizing the importance of stability in the company amidst external pressures.

AGM Decisions and Governance Enhancements

During the meeting, shareholders voted in favor of key proposals, including approval of financial statements for the previous year and a cash dividend of KRW 7,500 per common share. Notable proposals passed included capping the number of board members to 19, which was supported by over 70% of voters. This decision aims to streamline board operations and enhance decision-making efficiency, as recommended by major global proxy advisory firms.

Another significant resolution was the appointment of an outside director as board chair, a move anticipated to bolster governance independence and oversight. Coupled with the introduction of quarterly dividends and adjustments to the dividend record date, these changes are designed to improve predictability and enhance shareholder value over time.

Cumulative Voting System Implementation

For the first time, directors were appointed using a cumulative voting system, promoting shareholder rights and board diversity. This system grants voting rights proportional to the number of directors being elected, which aligns with recent governance trends. Consequently, five out of eight candidates proposed by Korea Zinc were appointed, including both internal and external directors with diverse professional backgrounds.

New Audit Committee Members

Significant appointments were also made to the company’s Audit Committee, with members chosen for their expertise in legal and financial compliance. Their backgrounds will play a crucial role in fortifying the internal controls and transparency necessary for Korea Zinc to navigate the complex regulatory landscape.

Future Outlook

A representative from Korea Zinc reiterated the commitment to safeguarding the company against external takeover threats, emphasizing its role in South Korea's energy security and mineral supply chain. The management's robust support during this AGM reflects the collective sentiment among shareholders and employees to uphold the company’s integrity and operational stability.

In conclusion, the strong backing for the current management at Korea Zinc's AGM underscores a shared commitment among stakeholders to navigate the challenges posed by external influences, ensuring the company's continued success and pivotal role in the industry.