Korea Zinc held an emergency board meeting on the 21st and decided to convene a shareholder meeting on September 9 to address director appointments amid an ongoing management dispute with MBK Partners and Youngpoong. The decision follows the failure to appoint audit committee members at the March regular shareholder meeting due to opposition from MBK Partners and Youngpoong, and the subsequent resignation of four independent directors in June that created board vacancies. Korea Zinc accepted the concentrated voting method proposed by MBK Partners and Youngpoong to resolve governance risks and stabilize board operations before the statutory deadline of September 10.
Korea Zinc Schedules September 9 Shareholder Meeting for Director Appointments
Korea Zinc announced that the shareholder meeting will take place on September 9 at the Mondrian Hotel in Yongsan-gu, Seoul. The agenda includes amendments to the articles of incorporation to expand separately elected audit committee members, the appointment of four directors through concentrated voting, and the appointment of an independent director who will serve as an audit committee member.
The company attempted to appoint separately elected audit committee members at the March regular shareholder meeting in accordance with the revised Commercial Act, but the proposal was rejected due to opposition from MBK Partners and Youngpoong. Four independent directors resigned in June, creating board vacancies that prompted Korea Zinc to accept the concentrated voting method proposed by MBK Partners and Youngpoong.
Korea Zinc Approves Investment in Australia Richmond Valley Renewable Energy Project
The emergency board meeting approved funding support for the Richmond Valley Project pursued by ARK Energy, Korea Zinc's Australian subsidiary. The project involves the integrated construction of a Battery Energy Storage System (BESS) with a storage capacity of 2,200MWh (megawatt-hours) and generation capacity of 200MW (megawatts), along with a solar power plant in New South Wales, Australia. The project is planned as a 40-year long-term operation.
Korea Zinc stated that the investment will support the business diversification and eco-friendly energy procurement initiatives pursued since Chairman Choi Yoon-beom's appointment, and will establish a long-term revenue foundation.
Democratic Party Lawmaker Raises Concerns Over Private Equity Involvement in National Industries
Kim Hyun-jung, a lawmaker from the Democratic Party of Korea, stated at a National Assembly Policy Committee meeting on the morning of the 21st regarding Homeplus that "if MBK participates in management like it did with Homeplus, significant national losses are expected." She called for strengthening the social responsibility of private equity funds and implementing stricter management.
The National Assembly raised concerns about the practice of transferring national key industries to private equity funds. Lawmakers suggested that institutional improvements should be researched by referencing systems such as the UK's operating license system for key industries.
FAQ
What did Korea Zinc decide at the emergency board meeting on the 21st?
Korea Zinc decided to hold a shareholder meeting on September 9 at the Mondrian Hotel in Yongsan-gu, Seoul, to vote on director appointments through concentrated voting, amendments to expand audit committee members, and the appointment of an independent director as an audit committee member.
What is the Richmond Valley Project that Korea Zinc approved for investment?
The Richmond Valley Project is a 40-year renewable energy project in New South Wales, Australia, involving the construction of a Battery Energy Storage System with 2,200MWh storage capacity and 200MW generation capacity, along with a solar power plant, pursued by Korea Zinc's Australian subsidiary ARK Energy.
