Choi Yoon-bum, chairman of Korea Zinc, along with the management team, sent a message to employees asking them not to be unsettled ahead of the upcoming extraordinary shareholders' meeting next month, where they will face off against Yongpyong and MBK Partners.

Choi Yun-beom, Chairman of Korea Zinc. /Courtesy of Korea Zinc

According to the business community on the 22nd, the management team of Korea Zinc stated in a message titled 'A Message to Employees' on the 20th, the closure date for the shareholder register for the extraordinary general meeting, regarding MBK and Yongpyong's additional acquisition of Korea Zinc's equity, "Our management has anticipated and monitored the opponent's movements and has made ample preparations, so there is no need for employees to be unsettled at all." They urged employees to be faithful to their respective duties instead of worrying about the company's future.

On the 19th, MBK and Yongpyong increased their equity to 40.97% by purchasing more than 1% of Korea Zinc's shares on the market. Chairman Choi's equity stands at 17.50%, and when combined with the supportive factions, it amounts to about 34%. The two sides are expected to face off at the extraordinary general meeting on the 23rd next month over the appointment of 14 directors proposed by MBK and Yongpyong. The National Pension Service, considered a casting vote in the extraordinary meeting, holds about 4% equity.

The management team of Korea Zinc noted, "We had anticipated that MBK would continue to purchase on the market following the public purchase and had prepared adequate measures in response." They further stated, "The collective wish to ensure that Korea Zinc, a key national industry with critical national technologies and advanced strategic technologies, does not fall into the hands of speculative predatory capital and failed smelting corporations, will definitely be realized."

Korea Zinc is expected to announce the convening of the extraordinary general meeting on the 23rd. Both sides are anticipated to secure proxies over the next month targeting small shareholders based on the confirmed shareholder register.