[Edaily Marketin Hur Jieun Reporter] KoreaZinc(010130) The extraordinary shareholders’ meeting concluded with Chairman Yoon Choi’s faction successfully defending the separate election of audit committee members. However, given that the MBK and Youngpoong factions increased their number of directors to seven—opposing the 12 directors from Chairman Yoon Choi’s faction—it is assessed that MBK and Youngpoong also secured a significant gain. With nine directors’ terms set to expire at next year’s annual shareholders’ meeting, observers predict that the real showdown will take place next year.

At the extraordinary shareholders’ meeting of KoreaZinc held on the 9th at the Mondrian Hotel in Yongsan-gu, Seoul, Professor Baek In-kyu of Dankook University—backed by Chairman Choi’s faction—was elected in the key vote on Agenda Item No. 3, the appointment of separately elected audit committee members. However, on the second agenda item—the election of four independent directors conducted via the cumulative voting system—Attorney Shim Hye-seop and Professor Lee Jun-bong of Sungkyunkwan University, both recommended by the MBK and Youngpoong camp, secured the top two spots with 25.27% and 25.26% of the vote, respectively, and were elected to the board.

The vote counts were also extremely close. Attorney Shim and Professor Lee received 18,849,581 votes (25.27%) and 18,844,848 votes (25.26%), respectively. Professor Lee Hyung-kyu of Hanyang University and Professor Seo Eun-sook of Sangmyung University, who were recommended by the KoreaZinc Board of Directors, received 18,378,096 votes (24.64%) and 18,375,829 votes (24.63%), respectively, finishing in third and fourth place.

Initially, market observers had expected that if Hanwha, LG Corp., and Crucible JV—which were considered friendly shareholders of Chairman Choi—concentrated their votes, Chairman Choi’s candidates would secure the top vote counts. However, a dramatic turnaround occurred as candidates backed by MBK and Youngpoong swept the top vote shares. In particular, given that the four candidates were in a tight race with vote shares ranging from around 24% to 25%, it is presumed that those considered allies did not consolidate their votes behind a single candidate.

In the vote for the third audit committee member, Professor Baek In-kyu of Dankook University, representing KoreaZinc, secured an overwhelming victory with 5,092,810 shares (81.8%). Park Yu-kyung, former CEO of APG Asset Management and aligned with MBK and Youngpoong, secured only 1,739,065 shares (27.93%). Although the audit committee seat went to Chairman Choi’s camp, observers note that the MBK and Youngpoong faction achieved a practical gain by securing a solid stake on the board, thereby upholding the original intent of the cumulative voting system.

The market views this extraordinary general meeting as a preliminary skirmish, expecting the real showdown to take place at next year’s annual general meeting. This is because the terms of no fewer than nine current board members will expire simultaneously at next year’s annual general meeting. Depending on the outcome of the vote at that meeting, the composition of the board could be completely overturned.

MBK and Youngpoong plan to use the seven directors who successfully secured seats on the board as a springboard to highlight Chairman Choi’s managerial shortcomings in the run-up to next year’s annual general meeting. On the other hand, Chairman Choi’s camp intends to retain shareholder support by demonstrating the effectiveness of its shareholder return policies and new business initiatives, leveraging the momentum gained from securing a majority on the board and retaining the audit committee members.