Goryeo Zinc Employees and Executives Concerned About 'Deterioration of Working Conditions' During Management Change

Survey of 1,987 Employees Conducted
91% Express Concerns Over Decline in Global Brand Trust

A survey revealed that employees of Korea Zinc are most concerned about the deterioration of working conditions if the current management is replaced due to Yeongpung and MBK Partners taking control of the board of directors.

Korea Zinc disclosed the results of a survey conducted among its employees on the 16th. The survey was conducted over seven days from December 17 to 23 last year, targeting 1,987 employees, of whom 1,010 responded. To enhance reliability, the survey was conducted anonymously online.

When asked about the "most negative impact on Korea Zinc if a hostile merger and acquisition (M&A) succeeds," the most common response was deterioration of working conditions such as employment, wages, and welfare (18.6%, 938 respondents, multiple answers allowed). The second highest concern was worsening labor-management conflicts due to workforce reductions and restructuring (16.3%, 825 respondents).

Other concerns included ▲leakage of core technology overseas (15.9%, 803 respondents) ▲decline in global trust in the non-ferrous metals industry (13.2%, 668 respondents) ▲loss of key personnel (12.2%, 615 respondents) ▲delays in technological innovation (9.5%, 482 respondents) ▲disruption of non-ferrous metal supply chains negatively affecting related industries (8.6%, 432 respondents).

Additionally, 91.4% of respondents believed that the execution of Environmental, Social, and Governance (ESG) initiatives and social responsibilities such as environmental protection would be negatively impacted, and 90.1% anticipated that trust with local communities would be broken.

Concerns were also raised that MBK and Yeongpung’s involvement in management would severely impact the business. 90.7% (916 respondents) feared that if the hostile M&A succeeded, Korea Zinc’s credibility and role as a global brand would significantly decline, and 90.2% (911 respondents) believed it could adversely affect cooperative relationships with business partners.

As the management dispute has prolonged, employees’ anxiety and stress have increased. Compared to the first survey conducted in October last year, 76% (768 respondents) reported higher levels of anxiety and stress. In the previous survey, more than half of Korea Zinc employees expressed psychological burden and anxiety due to continuous media exposure and growing attention and concern from those around them.

A Korea Zinc official stated, "We can confirm that employees have become mentally and physically exhausted as the hostile M&A has continued for over four months," adding, "Considering the negative impacts on business, ESG management, and local communities, MBK Partners and Yeongpung must immediately cease behaviors that undermine the company’s competitiveness."

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