Unable to appoint directors for intensive voting at Korea Zinc's shareholders' meeting...MBK, Youngpoong, and the majority of the board of directors are visible.

As the court accepted MBK Partners and Youngpoong's argument that directors should not be appointed through intensive voting at the Korea Zinc extraordinary shareholders' meeting held the day after tomorrow (23rd), the MBK and Youngpoong coalition are expected to secure a majority of the board of directors.

As a result, the dispute over management rights of Korea Zinc, which began in September last year, is expected to end with the victory of the Youngpoong-MBK alliance unless something unexpected happens.

Earlier, the Seoul Central District Court decided to cite an injunction on the prohibition of introducing the "agenda for the appointment of directors based on intensive voting" raised by the Youngpoong and MBK unions.

The court judged that the regulations of the Commercial Act require that concentrated voting is already permitted by the articles of association at the time when shareholders request concentrated voting, but Korea Zinc's articles of association explicitly stipulates that the concentrated voting system is not applied.

As a result, 14 candidates for directors from Youngpoong and MBK will succeed in entering the board of directors at the extraordinary shareholders' meeting without appointing directors through the intensive voting system promoted by Korea Zinc.

Youngpoong and MBK issued a statement after the court decision and said, "I think it is a natural result," adding, "We expect the governance structure of Korea Zinc to be improved, including the reorganization of the board of directors and the introduction of the executive officer system, through an extraordinary shareholders' meeting on the 23rd."

In response, Korea Zinc refuted that the court's decision is not possible to propose an agenda to appoint directors by intensive voting system, but has nothing to do with introducing the intensive voting system, and that it will actively pursue the introduction of the intensive voting system in line with the purpose of protecting minority shareholders.