Korea Zinc Achieves 100% Compliance Rate on Key Indicators of Corporate Governance Report...Result of Company-wide Improvement Efforts

*This content was translated by AI.

Korea Zinc (Chairman Choi Yun-beom) recently announced that it has achieved a 100% compliance rate on the key indicators of its Corporate Governance Report.

This achievement demonstrates once again that Korea Zinc is among the top-tier listed companies in terms of compliance with key corporate governance indicators, driven by its efforts in responsible management centered on the board of directors, strengthening a transparent information disclosure system, and continuously protecting shareholder rights and enhancing shareholder value.

In its "2025 Corporate Governance Report," Korea Zinc stated that it has fulfilled all 15 key indicators. These key indicators reflect the governance level of listed companies, covering areas such as protection of shareholder rights, board independence, and internal control systems.

A Korea Zinc official said, "Achieving 100% compliance with the key indicators of the Corporate Governance Report is the result of efforts to substantially improve the corporate governance structure in line with the expectations of shareholders and the market." The official added, "This achievement is particularly meaningful given the significant differentiation from Yeungpoong and MBK, which have been attempting hostile M&A attempts for several years."

Last year, Korea Zinc also recorded an 80% compliance rate on key indicators, earning evaluations that its governance structure was above the industry average.

This year, Korea Zinc improved upon items that were not met last year, including the 4th-week prior notice for shareholder meetings, holding meetings outside of concentrated shareholder meeting days, and providing predictability for cash dividends, thereby achieving full compliance across all items.

Specifically, Korea Zinc focused on protecting shareholder rights and strengthening the independence and transparency of the board of directors. First, for the 52nd Regular Shareholder Meeting held this year, the company announced the convening 29 days in advance on February 23, 2026, allowing shareholders sufficient time to review the agenda items. The meeting date was also scheduled to avoid concentrated shareholder meeting days, and the company simultaneously implemented electronic voting and recommended proxy voting to enhance shareholder convenience.

The effort to enhance dividend predictability also attracted market attention. While conducting the 2025 year-end dividend and 2026 quarterly dividends, Korea Zinc's board of directors first determined the cash dividend amount and set the dividend record date after the dividend amount was finalized. This allowed investors to confirm dividend availability and scale before making investment decisions, thereby reducing information asymmetry regarding dividends and improving the transparency of the shareholder return policy.

Efforts to strengthen board independence, diversity, and transparency are also receiving high evaluations. Korea Zinc appointed Lee Sa-hoe (Chairman) as an outside director and ensured that outside directors constitute more than half of the board. Diversity was also secured by including four female outside directors and two foreign directors.

Investor communication was also expanded. Last year, Korea Zinc arranged 17 communication sessions with shareholders and investors through domestic and international investor conference calls, face-to-face meetings, and securities firm conferences. In addition to dedicated staff, top executives directly met with investors when necessary to answer questions and explain management strategies and ESG-related matters, thereby enhancing investors' access to information. Furthermore, the company publicly disclosed the evaluation and compensation systems for executives, further strengthening the transparency and accountability of board operations.

The increased independence of the audit organization also drew attention. Korea Zinc conducts separate communications between external auditors and the audit committee at least once per quarter. The company also guides that non-audit services provided by auditors must receive approval from the audit committee and transparently discloses the results. Korea Zinc plans to continue its ongoing improvements in corporate governance and aims to leap forward as a core mineral hub enterprise that meets global standards.

A Korea Zinc representative added, "Korea Zinc will continue to make greater efforts with all employees to achieve transparent decision-making centered on the board of directors, protect shareholder rights, and establish a governance system at a global level."

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*This content was translated by AI.