Korea Zinc "Legally Impossible to Conduct Own Stock Loan Transactions... Legal Responsibility for Spreading False Information"

Korea Zinc denied the possibility of 'reviving voting rights through treasury stock lending transactions' raised by MBK Partners and the Youngpoong side, calling it groundless.

On the 9th, Korea Zinc stated in a press release, "Since the distribution and spread of false information that does not even exist has seriously damaged our company's reputation, we will strictly hold them legally responsible."

Earlier, the MBK-Youngpoong alliance criticized, "Korea Zinc must immediately cancel the 12.3% of treasury stock it currently holds," adding, "If treasury stock is lent through lending transactions to Chairman Choi Yoon-beom's friendly forces and voting rights are revived, it would be an act of not keeping the promise to the market to immediately cancel treasury stock."

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A lending transaction is a deal where a stock owner lends shares they hold to a borrower for a certain period, and in the case of treasury stock lending transactions, the borrower gains voting rights.

Korea Zinc rebutted that under the Capital Markets Act, treasury stock cannot be disposed of for six months from the acquisition date, and this applies to lending transactions as well. Korea Zinc said, "Our company was not even aware that there was a treasury stock lending transaction," adding, "It is clear that MBK and Youngpoong arbitrarily created a fictitious situation that does not exist and spread it as if it were real to create a negative image of Korea Zinc."

Furthermore, they stated, "Korea Zinc has repeatedly announced and promised to the market, shareholders, and investors that it will cancel treasury stock acquired during the recent tender offer process," and claimed, "MBK and Youngpoong are only focused on shaking Korea Zinc by repeatedly filing legal lawsuits against the Korea Zinc board of directors, disrupting normal management and board activities, and making inconsistent demands."

Meanwhile, Korea Zinc will hold an extraordinary general meeting of shareholders on the 23rd of next month to resolve agenda items such as ▲ the additional appointment of 14 directors from MBK and Youngpoong sides ▲ amendments to the articles of incorporation to introduce an executive officer system. Both sides have entered an on-market purchase battle to secure additional shares, and Korea Zinc's stock price once soared to 2.2 million won.

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