Choi Yunbeom-Friendly Stake Hyundai Motor, Korea Zinc Absent from Extraordinary General Meeting

Interpreted as an Intention to Remain Neutral in the Management Rights Dispute

Hyundai Motor Company did not attend the extraordinary general meeting of shareholders of Korea Zinc, which is currently undergoing a management rights dispute. Although it was classified as an ally of Chairman Choi Yoon-beom, it expressed neutrality at this shareholders' meeting.

According to industry sources on the 23rd, Hyundai Motor did not attend the Korea Zinc extraordinary shareholders' meeting held at the Grand Hyatt Seoul in Yongsan-gu, Seoul. A Hyundai Motor official confirmed, "It is true that we did not attend." However, the reason for the absence was not disclosed. It is interpreted as a choice to maintain neutrality amid the management rights dispute.

As of the end of last year, Hyundai Motor holds a 5.76% stake in Korea Zinc. By not exercising voting rights this time, it is expected that Chairman Choi's side may be disadvantaged. Chairman Choi's side holds a total of 34.35%, including friendly shares. Without Hyundai Motor's 5.76%, it amounts to 28.59%.

However, Korea Zinc proceeded with the extraordinary shareholders' meeting while restricting the voting rights of Youngpoong's 25% stake among the shares held by Youngpoong and MBK Partners. The day before, by holding a 10.33% stake in Youngpoong through its subsidiary Sun Metal Corporation (SMC), a mutual shareholding relationship was formed, preventing Youngpoong and Korea Zinc from exercising voting rights over each other.

According to the 'mutual shareholding restriction' system under the Commercial Act, if two companies hold more than 10% of each other's shares, they cannot exercise voting rights in the other company. Through this, the strategy is to block the voting rights of about 25% of the shares held by Youngpoong out of the approximately 40% stake in Korea Zinc held by MBK and Youngpoong.

MBK and Youngpoong immediately protested. They argued that the mutual shareholding restriction applies only to domestic corporations and stock companies, so it cannot be applied to SMC, a foreign company established in Australia and a limited company. They pointed out that restricting voting rights through this is a serious violation of the law. However, Korea Zinc proceeded with the shareholders' meeting applying the existing agenda as is.

The temporary shareholders' meeting of Korea Zinc is being held on the afternoon of the 23rd at the Grand Hyatt Seoul in Yongsan-gu, Seoul. Photo by Jo Yong-jun

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