KGC (Korea Zinc) CI and Young Poong CI [KGC and Young Poong Websites]

KGC, which is currently embroiled in a management rights dispute, is continuing its back-and-forth exchanges with its largest shareholder, the Young Poong and MBK Partners consortium, ahead of the shareholders' meeting scheduled for the 24th.

On the 8th, the Young Poong and MBK Partners side issued a press release asserting that they have consistently maintained their position that "a stock split and the introduction of an executive officer system are institutional measures to enhance corporate value and normalize board functions."

This statement is a rebuttal to claims that their stance has changed, given that Young Poong and MBK Partners had voted against "a stock split and the introduction of an executive officer system" at an extraordinary shareholders' meeting a year ago, but have now resubmitted these proposals for the upcoming meeting.

MBK Partners [Provided by MBK Partners]

In response, the Young Poong and MBK side argued that "re-proposing agenda items with the same intent is to seek shareholders' opinions again through a lawful and fair process."

The MBK and Young Poong side emphasized that "due to the illegal actions of Chairman Choi Yoon-beom, the extraordinary shareholders' meeting was disrupted, and we were unavoidably forced to oppose most of the agenda items." They added, "At that time, agreeing to the stock split and executive officer system proposals would have been interpreted as acknowledging the validity of the illegal deprivation of voting rights, thus posing a risk of being exploited."

They further explained, "In January 2025, the extraordinary shareholders' meeting was disrupted by the deprivation of the largest shareholder, Young Poong's, voting rights through an act of circumvention just before the meeting. The court ruled that this voting rights restriction was unlawful and issued an injunction against the validity of many resolutions from the extraordinary shareholders' meeting."

They continued, "Chairman Choi Yoon-beom and KGC should apologize to all shareholders for causing the disruption of the extraordinary shareholders' meeting in January 2025. This shareholders' meeting is not just a vote on agenda items, but an opportunity to redefine the accountability structure of the board of directors and current management. Only when the principles of corporate governance are sound can corporate value be sustained."

In response, KGC issued a rebuttal criticizing that "the MBK and Young Poong side's flip-flopping and distortion of facts are becoming increasingly egregious."

KGC argued, "The reason the court granted the provisional disposition in relation to the extraordinary shareholders' meeting in January of last year was because SMC (a subsidiary of KGC) did not meet some of the requirements for a stock corporation. Subsequently, the court ruled that the restriction of voting rights for SMH (a subsidiary of KGC), which met the requirements for a stock corporation, was lawful at the March regular shareholders' meeting. They are continuing to conceal and misrepresent and distort these facts."

KGC further claimed, "The shareholder proposals put forth by the MBK and Young Poong side also re-present agenda items that they themselves had previously applied for provisional dispositions against or voted against, thereby increasing shareholder confusion. They appear to be hastily trying to explain their zigzagging approach, which is far from enhancing shareholder value."

KGC also warned, "It has come to our attention that employees of proxy solicitation firms representing MBK and Young Poong are contacting shareholders while wearing identification badges that appear to be KGC employee IDs to solicit voting rights. Such actions may constitute violations of the Capital Markets Act or obstruction of business."