73% of Employees at Korea Zinc Feel Psychological Anxiety Due to Management Dispute

A significant number of employees at Korea Zinc have recently experienced high levels of fatigue and stress due to the management rights dispute with Youngpoong and MBK Partners.

On the 2nd, Korea Zinc released the results of an online survey conducted among approximately 2,000 employees at its headquarters. The survey was conducted over five days from October 28 to November 1, with 1,175 employees, representing 60% of the total workforce, participating.

Regarding the impact of the management rights dispute on employees, 72.8% (855 people) reported feeling psychological burden and anxiety due to continuous media exposure and increased attention and concern from those around them. Additionally, 59.6% (700 people) said they have felt job insecurity or have considered changing jobs.

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Korea Zinc expressed concern, stating, "It has become clear that many employees are experiencing burdens related to the management rights dispute, job insecurity, and considerations of leaving, raising significant concerns about the stability of company management and human resource management." They added, "This situation could also lead to the departure of key personnel who form the foundation of Korea Zinc’s position as the world’s number one non-ferrous metals company."

Regarding the impact on the organization, 76.2% of respondents (895 people) answered that the dispute would have a very negative effect. It is analyzed that this will not only make normal corporate activities difficult but also significantly deteriorate business and organizational competitiveness.

Furthermore, 56.3% (661 people) reported a decline in work engagement. The causes include increased anxiety within the organization, a chaotic atmosphere, and growing concerns from external media exposure. Additionally, 62.6% (736 people) said they feel worry and anxiety even in their daily lives.

The impact on business was found to be even more severe. 96% of respondents said the dispute would negatively affect the company’s business and operational competitiveness. More than 88% believed it would adversely affect the global supply chain.

Korea Zinc explained, "An overwhelming majority are deeply concerned that Korea Zinc, the world’s number one non-ferrous metals company, may fail to maintain its global competitiveness and play a key role in South Korea’s economy as a national core industry." They added, "This is because most employees believe that if the speculative private equity fund MBK acquires the company, it will pursue artificial restructuring, business reorganization, and split sales to realize short-term capital gains, which would lead to a decline in corporate competitiveness and corporate value."

Meanwhile, various measures to overcome the current situation were suggested through multiple responses. Specifically, answers included ▲strengthening compensation and welfare benefits (88.5%) ▲providing abundant information and enhancing communication related to the management rights dispute (80.2%) ▲continuously spreading the company’s future vision, mission, and core values (66.2%) ▲implementing in-house happiness programs (53.6%), among others.

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