Why Trafigura Chairman, Ally of Korea Zinc, Is Visiting Korea in Person

Meeting with Chairman Choi Yoon-beom in mid-next month
Holding 1.49% stake... Business cooperation as well
"Likely to strengthen strategic cooperation beyond support"

The chairman of a multinational raw material trading brokerage company, regarded as an 'ally' of Korea Zinc, will visit Korea next month. It is expected that he will meet with Korea Zinc Chairman Choi Yoon-beom, who is currently involved in a management rights dispute, to discuss strengthening their strategic cooperation. This also signals an intention to support Chairman Choi amid the situation where Youngpoong and MBK Partners have become the largest shareholders through a public tender offer.

Jeremy Weir, Chairman and CEO of Trafigura (left), and Richard Holtham, Director and next CEO (Trafigura website)

According to business circles on the 18th, Jeremy Weir, chairman and CEO of Trafigura, and Richard Holterm, director and next CEO, will visit Korea in mid-next month to meet with Chairman Choi and other Korea Zinc executives. A Korea Zinc official explained, "Both sides will hold a meeting to discuss ways to strengthen cooperation."

Trafigura, headquartered in Singapore, is considered the world's largest raw material trading brokerage company. Its sales last year reached approximately 335 trillion won (244.3 billion dollars). It has maintained a long-term cooperative relationship with Korea Zinc, including raw material procurement. In 2022, Trafigura participated as a strategic investor (SI) by purchasing Korea Zinc's treasury shares worth 200 billion won and currently holds a 1.49% stake in Korea Zinc.

In November last year, Trafigura signed an investment agreement worth 185 billion won with Korea Zinc's subsidiary Kemco for an all-in-one nickel smelting plant and additionally concluded a long-term contract to supply 20,000 to 40,000 tons of nickel raw materials annually, expanding their cooperation. The nickel business is a core project under the 'Troika Drive' strategy led by Chairman Choi, and it is reported that there is a high level of trust in Chairman Choi's management capabilities.

It is also known that Chairman Choi has a close personal friendship with Chairman Jeremy Weir. Having graduated from Columbia University Law School and holding a New York State attorney license, Chairman Choi naturally met and developed a business discussion relationship with Weir while operating on the international business stage.

Business circles are paying close attention to how both sides will strengthen their strategic cooperation through this visit. There is also a possibility of agreeing on concrete actions to support Chairman Choi in the management rights dispute. Various measures are being discussed, such as directly purchasing additional Korea Zinc treasury shares or exchanging shares. From Trafigura's perspective, a change in the current management is likely perceived as a factor increasing uncertainty in business cooperation with Korea Zinc.

The fact that both the current CEO and the next CEO are visiting Korea together is also interpreted as Trafigura's intention to continue long-term cooperation with Korea Zinc. A business insider said, "Considering that the chairman himself is visiting during such a sensitive time triggered by the management rights dispute, it is expected that discussions will go beyond simply supporting Chairman Choi to broader cooperation."

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