Goryeo Zinc Management Dispute, Institutions Also Support MBK and Youngpoong Sides

16 Out of 19 Institutional Investors Express Support
MBK and Youngpoong Alliance Effectively Secures Victory

One day before the Korea Zinc extraordinary general meeting of shareholders, major domestic and international pension funds and institutional investors expressed their support for the director candidates nominated by MBK Partners and Youngpoong.

On the 22nd, MBK Partners announced that, in addition to the four major domestic and international pension funds that disclosed their official voting results, 16 out of 19 institutional investors expressed support for the board candidates recommended by MBK and Youngpoong. A representative from MBK Partners stated, "16 institutional investors cast their votes only for the MBK and Youngpoong director candidates," adding, "We understand that only two institutional investors supported the Korea Zinc candidates."

Domestic and international pension funds also showed support for MBK and Youngpoong. Regarding the key agenda item of director appointments at the Korea Zinc extraordinary general meeting on the 23rd, four entities?the California Public Employees' Retirement System, California State Teachers' Retirement System, National Pension Service, and the Norwegian Government Pension Fund?have disclosed their voting results. Among them, the California Public Employees' Retirement System, California State Teachers' Retirement System, and the Norwegian Government Pension Fund voted exclusively in favor of the MBK and Youngpoong director candidates. The Norwegian Government Pension Fund supported all 14 director candidates recommended by MBK and Youngpoong and opposed all seven candidates recommended by Korea Zinc. The National Pension Service supported three director candidates each from both MBK and Youngpoong and Korea Zinc.

An MBK Partners official said, "The support from influential domestic and international pension funds and institutional investors for the MBK and Youngpoong director candidates signifies the need for reform and improvement in the current Korea Zinc board," adding, "We hope that the business community and general shareholders will also join the wave of governance reform at Korea Zinc."

Meanwhile, after the Seoul Central District Court rejected Korea Zinc's request to introduce cumulative voting the previous day, the management dispute is expected to effectively end in favor of MBK and Youngpoong. MBK and Youngpoong hold a 40.97% stake in Korea Zinc based on total shares and 46.7% based on voting rights. Even when combining friendly stakes from Hanwha Group, Hyundai Motor Group, and others, Korea Zinc holds only 38.87%. If the 14 director candidates from MBK and Youngpoong are appointed at the Korea Zinc extraordinary general meeting on the 23rd, they will secure a majority on the board and gain control of management.

Kim Kwang-il, Vice Chairman of MBK. Photo by Yoon Dong-ju

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