Korea Zinc’s Directors Oppose Youngpoong’s Tender Offer

As the battle for control rights between Youngpoong (Jang family) and Korea Zinc (Choi family), who have been in the business together for 75 years, intensified, all seven of Korea Zinc’s outside directors became on to support the Choi family.

According to Korea Zinc, all seven outside directors of Korea Zinc issued a statement and gave their support to Korea Zinc Chairman Choi Yoon-beom. They said, “Korea Zinc’s management has been managing with integrity while receiving robust monitoring and checks from outside directors,” and “From the perspective of shareholders’ interests, we oppose (Young Poong’s) tender offer with the consensus of all outside directors.”

Korea Zinc emphasized the business capabilities of the current management and appealed for shareholder support. Korea Zinc claimed, “The average annual operating profit rate of smelters around the world is about 2-3%, but the average annual operating profit rate of Korea Zinc is 8-10%,” adding, “This is proof that Korea Zinc’s technology and know-how is the best in the world.”

Youngpoong’s side criticized the composition of Korea Zinc’s outside directors. MBK Partners said, “If the board of directors of Korea Zinc had acted properly, it would not have been absurd to invest 560 billion won in One Asia Partners and acquire Ignio Holdings, which was in a state of complete capital erosion, because 580 billion was won,” and added, “Chairman Choi Yoon-beom did not accept a decision from the board of directors.”

Related News

• Korea Zinc’s Management Rights Battle Intensifies
• Youngpoong’s Tender Offer for Korea Zinc
• MBK Partners Criticizes Korea Zinc’s Board of Directors

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