This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:52 p.m. on Mar. 4, 2026.
The Young Poong–MBK Partners alliance supported the appointment of a U.S. director on the agenda for the regular shareholders meeting on the 24th. Until now, Young Poong–MBK has expressed a positive stance on Korea Zinc building a smelter in partnership with the U.S. side.
Young Poong–MBK expects to secure at least three board seats through cumulative voting at this regular shareholders meeting. The side of Chair Choi is expected to have a strong chance of securing two seats.
According to the investment banking (IB) industry on the 4th, Young Poong–MBK recently disclosed the proxy solicitation reference materials and, at the same time, finalized its positions for or against each agenda item.
Young Poong–MBK expressed support for Walter Field McLellan, recommended by Crucible JV LLC as a candidate for other nonexecutive director. Crucible JV is a joint venture established by Korea Zinc with the U.S. Department of Defense, among others.
Among the board candidates recommended by the Korea Zinc management side, three in total including Chair Choi Yun-bum, Young Poong–MBK opposed the proposal to reappoint Choi. It also opposed the reappointment of outside director Lee Min-ho (audit committee member). In contrast, it was understood to have not expressed an opinion on the reappointment of outside director Hwang Deok-nam.
At this regular shareholders meeting, cumulative voting will be implemented, which grants voting rights per share equal to the number of directors to be elected. In a cumulative voting system, the "minimum equity ratio (safe election zone)" to unconditionally elect one candidate without external variables such as swing voters is "1/(number of directors to be elected + 1)."
Assuming six directors are elected as proposed by Young Poong–MBK, and applying a realistic 90% meeting attendance rate, the calculation shows that 12.8% of the total voting rights would be needed to secure one seat.
The IB industry estimates that the Young Poong–MBK alliance can stably secure at least three seats at this regular shareholders meeting.
The Young Poong–MBK alliance holds a total of 42.1% of the voting equity, while Chair Choi's family and friendly shareholders Hanwha and LG Chem hold 27.9%. The U.S. JV holds 10.8%, and the remaining roughly 19% belongs to swing voters such as the National Pension Service and foreign institutions. Of that, the National Pension Service holds about 5%, and a large foreign institution holds around 4%. The remainder is held by domestic and foreign individual shareholders and other corporations.
Among the director candidates recommended by Young Poong–MBK, Park Byung-uk, CEO of Cheong Accounting Firm, is highly likely to take one seat. Park was nominated as a candidate for other nonexecutive director to fill the vacancy left by adviser Jang Hyeong-jin.
Beyond that, four candidates—Choi Yeon-seok, partner (vice president) at MBK Partners, who is up for other nonexecutive director, and Oh Young, Choi Byung-il, and Lee Seon-suk, who are seeking outside director seats—must compete for the remaining two seats. Which candidates are elected will likely depend on whom Young Poong–MBK throws its support behind.
Given that the management side led by Chair Choi has an equity ratio of 27.9%, it is estimated to be able to stably secure two seats. One seat is effectively expected to go to Chair Choi.
However, the side of Chair Choi is expected to have to allocate about 3% of the 27.9% equity to the U.S. candidate McLellan. This is because the U.S. JV's 10.8% stake alone is insufficient for an independent win.
An IB industry official said, "If a candidate supported by the U.S. government were to lose, the damage to the management side would be significant, so Chair Choi's side may concentrate around 3% equity on the U.S. candidate."
Considering this, analysis suggests it is important for Chair Choi to win over swing voters, because there is no guarantee of securing two seats. However, the U.S. candidate is likely to gain support from swing voters such as foreign institutions, and if any residual equity arises, Young Poong–MBK could also cast votes for the U.S. candidate, leading to analysis that Chair Choi's side does not need to allocate excessive voting rights to the U.S. candidate.
An IB industry official said, "Ultimately, depending on the attendance rate at the shareholders meeting and where the National Pension Service and large foreign institutions cast their votes, both sides could have a chance to secure one additional seat."