The global proxy advisory firm Institutional Shareholder Services (ISS) expressed a 'yes' opinion on all the proposals made by Young Poong at the regular shareholder meeting scheduled for the 27th. On the other hand, the chairman of Korea Zinc, Choi Yoon-beom, was advised to vote 'no' on all shareholder proposal items suggested by Young Poong Precision Corporation.
ISS recommended approval of all items proposed by Young Poong, including ▲ approval of the financial statements ▲ stock split ▲ appointment of inside and outside directors, in a report analyzing the agenda published on the 15th. However, regarding the items proposed by Young Poong Precision Corporation, including ▲ introduction of cumulative voting system ▲ implementation of stock dividends, it stated that there is 'insufficient persuasive evidence,' thus expressing a 'no' opinion.
In particular, regarding the proposal for introducing a cumulative voting system, ISS stated that 'while it is advantageous for minority shareholders to secure representation on the board, there is a possibility of abuse if the corporate governance and ownership structure are not considered.'
It also added, 'ISS reviews proposals for introducing cumulative voting systems considering the specific circumstances of each company,' and 'Young Poong Precision Corporation's proposal for introducing a cumulative voting system did not provide persuasive evidence to improve the company's governance structure.'
Young Poong Precision Corporation previously played a role in limiting Young Poong's voting rights by forming a circular investment structure during Korea Zinc's extraordinary general meeting in January. At that time, SMC, a wholly-owned subsidiary of Korea Zinc in Australia, acquired 10.3% of Young Poong's shares held by Young Poong Precision Corporation and others, forming a circular investment structure. This background is interpreted as having been recognized by ISS.
Regarding the appointment of outside directors to serve as members of the audit committee, ISS supported the candidate recommended by Young Poong. It recommended approval for the candidate Jeon Young-jun, saying, 'Based on the review of qualifications and independence, it is judged that he can contribute to the protection of shareholder rights.'
Candidate Jeon Young-jun was also a candidate recommended by Must Asset Management, a general shareholder of Young Poong. Although Must Asset Management withdrew its shareholder proposal, including the recommendation of the candidate, after Young Poong recently presented its value-up measures, Young Poong, regardless of this, determined that the candidate is suitable as an outside director and decided to maintain the recommendation.
On the other hand, regarding the candidate Kim Kyung-ryul recommended by Young Poong Precision Corporation, it expressed a 'no' opinion, stating that there is 'insufficient evidence that it would make a substantial contribution to improving corporate management.'
Meanwhile, ISS, founded in 1985, is the world's largest proxy advisory firm, analyzing agenda items of shareholder meetings of major global corporations and providing voting guideline recommendations to large institutional investors in various countries.