[Edaily Marketin Reporter Hur Jieun ] The family of Yoon Choi, Chairman of KoreaZinc(010130), has carried out a restructuring by terminating some of its existing stock-backed loan agreements with financial institutions and concentrating collateral with the Meritz lending syndicate. This move is interpreted as a measure to meet the 300% collateral maintenance ratio demanded by the lending syndicate in response to the volatility of KoreaZinc’s stock price and to strengthen the cohesion of their shareholding.

According to the Financial Supervisory Service’s electronic disclosure system on the 6th, the number of shares subject to major contracts held by Chairman Choi and his specially related parties increased by 234,014 shares, from 1,563,526 shares (7.49%) to 1,797,540 shares (8.61%).

Of particular note is the consolidation of collateral with the Meritz syndicate. Chairman Choi and nine other members of the Choi family provided and re-pledged a total of 226,678 shares of KoreaZinc to the major creditor group—comprising lead arranger Meritz Securities, Meritz Fire & Marine Insurance, Meritz Capital, JB Woori Capital, Gwangju Bank, and Jeonbuk Bank—on July 30 and 31.

As a result, the number of shares provided as collateral by the Choi family to the Meritz lending syndicate increased from the previous 1,040,545 shares to 1,267,223 shares. Chairman Yoon Choi provided an additional 29,073 shares, bringing his total collateral to 185,494 shares, and eight relatives—including Honorary Chairman Choi Chang-geun (39,985 shares) and Chairman Choi Chang-kyu (82,740 shares)—joined in supplementing the collateral in large numbers. Yoo Joong-geun, former president of the Korean Red Cross and Chairman Yoon Choi’s mother, also provided 15,020 shares as new collateral.

Conversely, 200,000 shares previously pledged under the Choi family’s stock-backed loan agreements with DaishinSecurities and other institutions were released. Specifically, 100,000 shares pledged by Honorary Chairman Choi Chang-geun and 100,000 shares pledged by Chairman Yoon Choi at DaishinSecurities were each released. It appears that after securing valid shares by releasing the collateral tied up at DaishinSecurities, they provided 69,058 of those shares as collateral, while retaining the remainder as shares not subject to collateral. This effectively secures the flexibility to provide additional collateral should the stock price fall further.

This collateral restructuring is interpreted as the result of the Choi family providing additional shares as collateral under the 569,333.93 million won share-backed loan agreement signed with the Meritz lending syndicate last April. The Meritz lending syndicate set conditions for the loan, including an interest rate of 5.70–6.00% per annum and a loan-to-value ratio of 300%. With concerns over margin calls rising due to the recent decline in KoreaZinc’s stock price, analysts believe the owner’s family mobilized all of their personal shares to ensure the stable maintenance of the loan agreement with the Meritz lending syndicate.