Korea Zinc Workers Union Calls Criticism Following Homeplus Towards MBK...Will it be a variable for the shareholders' meeting on the 24th

*This content was translated by AI.

Ahead of Korea Zinc's regular shareholders' meeting (24th), concerns about the labor union's position and damage to organizational stability are becoming new variables. In particular, MBK Partners has been strongly criticized by union members in Korea Zinc following Homeplus, while the current management of Korea Zinc has secured the support of the union.

In a recent statement, the Korea Zinc Labor Union defined MBK and Youngpoong as "predatory speculative capital" and strongly opposed hostile M&A attempts. Emphasizing that "Korea Zinc is not Homeplus," the union criticized, "For the past 11 years since MBK took over Homeplus, Homeplus workers have continued hunger strikes and shaved their heads several times to prevent closures and restructuring."

He then strongly pointed out, "When my colleagues tried to save their workplaces by starving, MBK sold their assets, closed their stores, and trampled on workers' lives only by trying to "recover assets."

This union's voice has also continued at Homeplus. The Homeplus labor union is strongly opposed to the restructuring under the MBK system. According to the union, about 3,500 employees were cut and 19 stores were closed in the year after the rehabilitation. In particular, the union criticizes Homeplus' rehabilitation plan method as "the way to lead Homeplus to ruin."

At the Korea Zinc shareholders' meeting last year, the Homeplus labor union attended in person and raised issues with MBK's management method. In other words, workers' concerns about private equity-style management are spreading throughout investment companies.

On the other hand, in the case of Korea Zinc, the union and management focus on the company's sustainable growth and maintenance of competitiveness, keeping pace rather than increasing conflicts. Korea Zinc achieved a non-disciplinary collective agreement for 38 consecutive years last year, and Chairman Choi Yoon-beom called it a "greater achievement than the surplus for 102 consecutive quarters," emphasizing the importance of trust and cooperation between labor and management.

The market also seems to regard "organizational stability" such as labor-management cooperation as an important evaluation factor. Sustinvest pointed out in a recent agenda analysis report that industrial expertise, sustainable management capabilities, and management capabilities to stably execute mid- to long-term strategies have a significant impact on corporate value.

In particular, the report pointed out that with Korea Zinc pursuing mid- to long-term strategies such as building key mineral supply chains and overseas projects based on its global competitiveness, changes in management rights could lead to execution risks such as delays in decision-making, reduced organizational stability, and changes in strategy direction. As for MBK, it was evaluated that market boundaries exist in that it has a relatively strong short-term financial investment rather than long-term industrial operations due to the nature of private equity funds.

Analysts say such mixed evaluations could also affect shareholders' judgments at the regular shareholders' meeting on the 24th. In general, companies with trust between labor and management are highly evaluated for strategic execution and sustainability, while large conflicts with unions can lead to increased restructuring risks and uncertainties.

An industry official said, "As distrust of MBK revealed in the Homeplus case and stable labor-management relations of Korea Zinc are highlighted at the same time ahead of the Korea Zinc shareholders' meeting, the judgment on "who can increase corporate value more stably" is likely to serve as a key criterion for determining votes."

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*This content was translated by AI.