Korea Zinc: Cross Shareholding Limitation System Loophole

• The proxy battle at the EGM for the control of Korea Zinc (010130 KS) is scheduled for 23 January.

• One day prior to the EGM, Korea Zinc's Chairman Choi is trying to capitalize on the "cross-shareholding limitation system" in order to retain control of the company.

• In our view, it appears that the legal case regarding the cross shareholding limitation system is in favor of MBK/Young Poong alliance.