On-site inspection of KB Securities on tender offer and paid-in capital increase of Korea Zinc

The Financial Supervisory Service has launched an on-site inspection of KB Securities following Mirae Asset Securities regarding the tender offer of Korea Zinc's treasury stocks and paid-in capital increase.

An official from the Financial Supervisory Service said, "A prosecutor has been dispatched to KB Securities to find out the facts regarding the tender offer of Korea Zinc's shares and the paid-in capital increase."

This is said to be to check whether there was an appropriate review and unfair trade during the tender offer and paid-in capital increase of Korea Zinc's shares.

The Financial Supervisory Service believes that if the board of directors of Korea Zinc set up a tender offer plan for treasury stocks and planned to repay the borrowings with a paid-in capital increase in the future, it would be a fraudulent transaction, and if the securities company assisted it, it would be a violation of the Capital Markets Act.