Korea Zinc: Cumulative Voting System and 10 to 1 Stock Split

• Chairman Choi has proposed a cumulative voting system which is one of the agenda items to be discussed and voted upon at the EGM on 23 January.

• There is likely to be continued uncertainty about proxy voting, including whether or not Korea Zinc could use cumulative voting system for Chairman Choi to retain control of the company.

• On 23 December, Korea Zinc (010130 KS) announced that it will propose a 10 to 1 stock split on the next EGM scheduled for 23 January 2025.

At the next upcoming EGM on 23 January, MBK/Young Poong alliance and Chairman Choi's Korea Zinc alliance are expected to engage in a proxy battle over management rights. They will vote on numerous issues including a 10 to 1 stock split, cumulative voting system, and number of board members.

Cumulative Voting System

Chairman Choi has also proposed a cumulative voting system which is one of the agenda items to be discussed and voted upon on 23 January. Chairman Choi of Korea Zinc is trying to use cumulative voting system to counter MBK/Young Poong alliance. This is an agenda proposed by Yumi Development, a shareholder of Korea Zinc. Yumi Development, which holds a 1.63% stake in Korea Zinc, is a family company of Chairman Choi.

Under the cumulative voting system, it allows the voting rights of the shareholders to be concentrated on a specific director candidate. The cumulative voting system is a system that grants voting rights equal to the number of directors to be elected per share when electing directors. For example, when electing 10 directors, 10 voting rights are granted per share. These voting rights can be concentrated in one specific director candidate.