Amid controversy over Youngpoong dividend, Jang family's Goryeo-Ayeonseo draws attention to tens of billions of profits

*This content was translated by AI.

It has been confirmed that Youngpoong owner and major shareholder Jang Hyung-jin's family receives tens of billions of won in cash only from dividends received from Korea Zinc, including Youngpoong's cash dividend of 5 won per share (based on cash dividend) and 0.03 share dividend. Although some, including stock bulletin boards, point out that it is a so-called "salty water dividend," complaints from Youngpoong shareholders are growing, the Jang family is bound to differ from other shareholders of Youngpoong thanks to a stable source of revenue called the Korea Zinc dividend.

In particular, Youngpoong, which is dominated by the Jang family, has been continuously demanding that Korea Zinc increase its dividend amount. It is believed to be an argument to allow the Jang family and Youngpoong to receive more cash from Korea Zinc.

Against this backdrop, analysts say that the Jang family is likely to have expressed a de facto negative position at Youngpoong's regular shareholders' meeting by voting against and abstaining on the proposal to increase shareholder returns by diversifying dividend methods. In other words, different standards are being applied to Goryeo Zinc and Youngpoong.

According to the Financial Supervisory Service's electronic disclosure on the 7th, Jang Hyung-jin's family, the largest shareholder of Youngpoong, directly or indirectly owns about 6.8 million shares of Korea Zinc. Among them, 1,183,698 shares of Korea Zinc, which are held directly by the advisor Jang's family or through unlisted companies CK and HC, which are 100% owned by the advisor Jang's family, are counted.

As Korea Zinc passed 20,000 won per share as a settlement dividend at this year's regular shareholders' meeting, the Jang Adviser family and the Jang Adviser family-owned company are expected to receive about 23.6 billion won in cash (based on pre-tax) in a month only with the Korea Zinc dividend. Korea Zinc announced, "The scheduled dividend payment date is scheduled to be paid within one month from the date of the shareholders' meeting in accordance with Article 464-2 of the Commercial Act."

While Jang's family and his company secure about 23.6 billion won in cash from holding Korea Zinc shares, the dividend income secured by holding Yeongpoong shares is less than 36 million won. The difference is more than 600 times. Considering that Jang's family works for Youngpoong Group affiliates Korea Circuits and Youngpoong Electronics, and each salary received per person does not exceed 500 million won per year, the biggest source of revenue for Jang's family is the current Korea Zinc dividend.

Some point out that this is one of the reasons why Jang's family is considered to be stingy in returning shareholders to Youngpoong shareholders. Although Youngpoong's shareholder return is small, it receives large-scale dividends from Korea Zinc every year. Korea Zinc paid 15,000 won, 17,500 won and 20,000 won in annual cash dividends until fiscal 2023 and fiscal 2025. The Jang family collects tens of billions of won in cash every year at the beginning of the year.

Youngpoong shareholders have harshly criticized the company since 5 won per share was decided as a settlement dividend this year. In a stock discussion room, articles such as "a company that treats shareholders as beggars" and "Is it real?" were posted to gain sympathy from shareholders and investors, and Youngpoong explained that there were 0.03 stock dividends in addition to 5 won in cash. In this atmosphere, KZ Precision, a Youngpoong shareholder, also proposed a revision to the articles of incorporation that would allow it to be allocated to the regular shareholders' meeting this year as "other assets."

However, at the Youngpoong regular shareholders' meeting on the 25th of last month, the shareholder proposal, which includes other corporate stocks and other assets held by the company, was rejected with a total of 86.1 percent of opposition and abstention. Considering that the Youngpoong stake of Jang's family, the largest shareholder, is over 55%, a reasonable inference is that Jang's family expressed a negative position on the agenda to strengthen shareholder returns.

The Jang family is controlled, and Youngpoong and others have consistently demanded that Korea Zinc expand its dividend even before the management dispute with Korea Zinc. It was put forward for reasons such as enhancing shareholder value. However, it is not heard that Yeongpung, which is dominated by the Jang family, has been actively demanding the expansion of dividends.

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*This content was translated by AI.