Korea Zinc: An Important Legal Decision to Disallow Appointment of Directors Using Cumulative Voting

• On 21 January, there was an important legal court decision to disallow the appointment of directors using the cumulative voting system at the Korea Zinc's EGM on 23 January.

• This legal decision is likely to favor MBK/Young Poong alliance in the control of Korea Zinc. The market increasingly favors the likelihood of MBK/Young Poong alliance winning this proxy battle.

• Therefore, the chance of a further M&A battle has been reduced which is likely to further decline in the share price of Korea Zinc.