Korea Zinc withdraws paid-in capital increase...Dispute settlement at year-end shareholders' meeting

[Anchor]
Chairman Choi Yoon-beom of Korea Zinc, who is in a management dispute with Youngpoong and MBK, has withdrawn his plan for a paid-in capital increase.

Along with the market's opposition, the financial authorities stepped back by putting the brakes on it.

The winner of the management dispute is expected to be decided at the shareholders' meeting as early as the end of the year.

Reporter Choi Ah-young reports.

[Reporter]
KOREA ZINC Chairman Choi Yoon-beom abruptly withdrew his plan for a capital increase.

He bowed his head, saying that he had pushed to strengthen his shareholder base but did not fully understand the minds of shareholders.

[Choi Yoon-beom / Chairman of Korea Zinc: The company humbly apologizes for the market turmoil and shareholders' concerns.]

He also said he would strengthen the independence of the board and would step down as chairman of the board as soon as possible.

Chairman Choi made a tender offer on the 23rd of last month on the premise of retirement of treasury stocks,
In just a week,
, we took out the opposite paid-in capital increase card by surprise.

If successful, it could have secured about 3-4 percent of friendly shares, but opposition from inside and outside the market immediately poured out.

This is because it defends management rights with funds raised by new shareholders while damaging existing shareholders.

On top of that, the Financial Supervisory Service also put the brakes on the paid-in capital increase plan, saying it could be a fraudulent transaction.

[Ham Yong-il / Vice President of the Financial Supervisory Service (last month 31st): Examine specific facts, including how the capital increase was promoted at the same time during the tender offer period....]

{고려}The stock price plunged 14% on the withdrawal of Korea Zinc's paid-in capital increase.

As there has been no paid-in capital increase, the management dispute is likely to be concluded at an extraordinary shareholders' meeting to be held at the end of the year at the earliest.

In preparation for this, Youngpoong and MBK have started to expand their stake through in-house purchases.

Currently, Youngpoong and MBK's stake in Korea Zinc is estimated to be 39.83%, about 5 percentage points ahead of Chairman Choi's side.

The two sides are expected to continue their fierce behind-the-scenes battle, including buying on the market and securing friendly stakes, to win the vote battle at the general shareholders' meeting.

I'm YTN's Choi Ayoung.

Reporter: Hong Seong-no Lee Geun-hyeok
Design: Lee Na-young