Young Poong–MBK Partners consortium (hereinafter Young Poong–MBK) reacted positively to the resignation of four outside directors of Korea Zinc who had been suspended from duty, calling it "a late but correct decision."
Young Poong–MBK said in a statement on the 2nd, "The four outside directors who recently resigned were appointed at Korea Zinc's extraordinary shareholders meeting in Jan. 2025, but due to legal defects in that meeting, they were placed under a court-ordered suspension from duty," adding, "The fundamental responsibility for their inability to contribute their expertise to the board lies solely with inside director (chair) Choi Yun-beom's side."
Choi's side handed over 10.3% of Young Poong equity held by the Choi family to SMC, Korea Zinc's Australian affiliate, the day before the extraordinary shareholders meeting in Jan. last year. By forming an offshore circular shareholding and cross-shareholding relationship, it restricted Young Poong's voting rights.
At the time, the court determined that Choi's side violated the purpose of the Fair Trade Act's restriction on forming cross-shareholdings, causing a defect in the validity of the extraordinary shareholders meeting, and issued an order prohibiting the four appointed outside directors from performing their duties. They voluntarily resigned on the 29th of last month.
Young Poong–MBK interpreted, "Although the ostensible reason for the resignation is 'personal reasons,' a part of the defect arising from the past unlawful infringement of shareholder rights has, as a result, been corrected."
It added, "We will take this matter as another milestone in normalizing Korea Zinc's damaged governance," and "We will continue to fulfill our responsibility to improve transparent governance and enhance shareholder value."