SEOUL -- Korea Zinc’s largest shareholders, MBK Partners and Young Poong (herein, the Consortium), announced plans (Korea Zinc Value Up) to fundamentally reform the company’s governance structure to recover the long-overlooked shareholder value.

This decision follows the persistent decline in Korea Zinc’s corporate and shareholder value under the leadership of Chairman Choi Yoon-beom, with governance issues identified as the root cause.

In preparation for Korea Zinc’s extraordinary shareholders’ meeting on January 23, 2025, the Consortium has proposed the appointment of a new board comprised of 14 experts from four key sectors, along with the introduction of an executive director system.

Since assuming the role of CEO at Korea Zinc in 2019, Chairman Choi has been accused of unilaterally expanding friendly stakes, effectively dismantling a 70-year-long partnership with Young Poong, established by the company’s founding leadership. His tenure has been further criticized for engaging in illegal and unreasonable investments, allegedly privatizing management rights for personal gain.

The Consortium has deemed the current board structure, which has lost its ability to independently oversee executive actions, as obsolete and in need of replacement.

To address issues with the current board and establish an independent board that serves the best interests of all shareholders, the Consortium proposes 14 candidates, each possessing extensive experience and expertise in one or more of the following areas: capital markets, law, manufacturing business and corporate governance.

These 14 nominees will be grouped into four squads: (i) business strategy, (ii) M&A/finance/accounting, (iii) legal/risk management and (iv) ESG/governance. Each squad will create its own internal synergies, and the four squads will comprehensively enhance the value of Korea Zinc as one-team.