Korea Zinc Approves 5,000 Won Dividend, Rejects Articles Amendment... Choi Yoon-beom "Strengthening Technological Competitiveness" (Comprehensive)

50th Shareholders' Meeting on the 19th

The shareholder meeting of Korea Zinc, where the Jang family who founded Korea Zinc and the Choi family faced off, ended with an even split victory for both sides.

At the 50th regular general meeting of Korea Zinc held for over an hour from 9:45 a.m. on the 19th at the Yeongpoong Building annex in Gangnam-gu, Seoul, the dividend proposal opposed by the largest shareholder Yeongpoong Co., Ltd. was approved, while the amendment to the articles of incorporation proposed by Korea Zinc was rejected.

First, the first agenda item, the year-end dividend proposal of 5,000 KRW per share, was approved with 61.4% in favor. Prior to the meeting, most domestic and international proxy advisory firms such as ISS, Glass Lewis, and Korea ESG Institute also recommended supporting the dividend proposal.

Yeongpoong criticized this dividend proposal as damaging shareholder value. On the 21st of last month, Yeongpoong issued a statement titled "Position on the Agenda of the 50th Regular General Meeting of Korea Zinc," claiming that Korea Zinc reduced the year-end dividend compared to the interim dividend (10,000 KRW per share) paid in June last year despite having sufficient financial capacity. Korea Zinc rebutted, saying, "The shareholder return ratio last year (76.3%) was much higher than the previous year's 50.9%," and added, "If a company uses all its profits for investments or improving the business environment without returning to shareholders, it lowers corporate value and shareholder interests in the long term."

With shareholders siding with Korea Zinc on this day, the dividend dispute was settled for the time being.

On the 19th, shareholders are entering the 'Korea Zinc Annual General Meeting' held at the Yeongpung Building Annex in Gangnam-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The proposal to amend the existing articles of incorporation, which allowed only foreign joint ventures to participate in third-party allotment capital increases, was rejected. Although 53.02% of attending shareholders voted in favor, it did not meet the special resolution threshold. Amendments to the articles of incorporation require a special resolution, meaning approval by at least two-thirds of the shareholders present and at least one-third of the total issued shares.

Korea Zinc stated, "The shareholder attendance rate at this general meeting was below the average 90%, and with opposition from Yeongpoong and the Jang family who opposed the amendment, it was practically impossible for the agenda to pass." It added, "We tried to introduce a standard articles of incorporation recommended by the Korea Listed Companies Association and applied by 97% of listed companies including Yeongpoong, but failed to meet the special resolution requirements. We will strive to establish a management system that meets global standards beyond Korea."

The National Pension Service, which held about 7.8% and played a casting vote role, supported both the dividend and the articles of incorporation amendment proposals.

On this day, Jang Hyung-jin, advisor to Yeongpoong, and Choi Yoon-beom, co-CEO of Korea Zinc and chairman, did not attend. The meeting was chaired by Park Ki-duk, co-CEO of Korea Zinc.

On the 19th, shareholders are entering the 'Korea Zinc Annual General Meeting' held at the Yeongpung Building Annex in Gangnam-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Earlier, Jang Hyung-jin and Yeongpoong Co., Ltd. expressed opposition to the two proposals Korea Zinc suggested at the board meeting last month but were rejected. Yeongpoong issued a statement to the media the day after the board meeting, and Korea Zinc responded with a rebuttal. Both sides exchanged statements back and forth, continuing their off-site confrontation until the day before the general meeting.

The Yeongpoong Group was jointly founded in 1949 by the late founders Jang Byeong-hee and Choi Gi-ho. The Jang family has managed the holding company Yeongpoong Group and its electronics affiliates, while the Choi family has managed Korea Zinc, maintaining separated management. When Choi Yoon-beom, grandson of founder Choi Gi-ho, was promoted and inherited management rights in 2022, the possibility of separating the affiliates arose, and the shareholding competition with the Jang family intensified at the same time. Chairman Choi holds 1.75% of shares, but including friendly shares, it exceeds 33%. Yeongpoong Group's shareholding was 32.27% as of the end of last year.

The proposal to reappoint Chairman Choi Yoon-beom as an inside director was overwhelmingly approved. This will give momentum to the 'Troika Drive,' a new growth engine led by Chairman Choi, and the ESG management strategy.

Chairman Choi said, "Although the difficult management environment continues with a low-growth trend across domestic and international industries and rising electricity and raw material costs, we will enhance business competitiveness through cost reduction and technological improvement," adding, "We will create synergy between the existing smelting business and new businesses to leap forward as a leading eco-friendly future materials company."

This content was produced with the assistance of AI translation services.