On the 24th in the morning, as Korea Zinc held its regular shareholders meeting, Hanwha Group, which holds 7.7% equity, delegated its voting rights and did not attend the meeting. Hyundai Motor Group, which holds about 5% equity, decided, as before, to abstain from exercising its voting rights at this shareholders meeting.
According to the investment bank (IB) industry and business circles that day, Hanwha did not attend Korea Zinc's regular shareholders meeting but instead delegated its voting rights by submitting a power of attorney. It was not disclosed which side it decided to support, but the industry views that, as it has been classified as Chairman Choi's "white knight," it likely sided with management again this time.
Hanwha Co. is a major shareholder holding 7.7% equity in Korea Zinc. Hanwha Co. secured this equity in November 2022 through a treasury stock exchange with Korea Zinc. At the time, the two companies exchanged shares under the pretext of strengthening business alliances and strategic partnerships, and with that, Hanwha rose to become a major shareholder holding 7.7% equity in Korea Zinc.
In the IB industry, there was talk that Hanwha was attempting to sell its Korea Zinc equity. However, Hanwha Group denies this, saying it "has never considered a sale."
Hyundai Motor Group, which holds about 5% equity in Korea Zinc, effectively chose to abstain at this shareholders meeting as well. Hyundai Motor Group acquired about 5% equity in Korea Zinc in September 2023 as part of a strategic alliance. HMG Global, an overseas subsidiary jointly invested in by Hyundai Motor, Kia, and Hyundai Mobis, participated in Korea Zinc's third-party paid-in capital increase to acquire 5% equity. At the time, both sides said they would pursue cooperation on the supply chain for key electric-vehicle battery materials, including nickel.
However, Hyundai Motor Group maintained a de facto neutral stance by skipping not only the first extraordinary shareholders meeting held after the Korea Zinc management control dispute began, but also the regular meeting in March last year.
Korea Zinc held its regular shareholders meeting at 9 a.m. on the 24th at the Koreana Hotel in Jung-gu, Seoul. The industry expects the Young Poong–MBK Partners alliance to be able to stably secure at least three seats. Chairman Choi's side is likely to secure one to two seats, and the U.S. side one seat.
Currently, the Young Poong–MBK alliance holds a total of 42.1% of voting equity, while Chairman Choi's family and friendly shareholders Hanwha and LG Chem hold 27.9%. The U.S. JV's equity stake is 10.8%, and the remaining roughly 19% belongs to swing voters such as the National Pension Service and foreign institutions.
Among them, the National Pension Service is known to hold 5.3%, and a large foreign institution around 4% equity. The remainder is held by individual shareholders at home and abroad and other corporations.