Coryo Zinc Wins Decisive Victory in Key Shareholder Meeting Battle Over Audit Committee Appointment… 80–90% Support from Foreign and Retail Investors

*This content was translated by AI.

Choi Yun-beom (Chairman) and other members of Coryo Zinc’s current management team secured a decisive victory in the vote for the newly appointed independent audit committee member, which was the most critical issue at the extraordinary general meeting held on the 9th.

According to industry sources on the 10th, candidate Baek In-gyu, recommended by Coryo Zinc’s board of directors, was elected as the new audit committee member at the company's extraordinary general meeting held on the 9th. Candidate Baek received approval from 81.8% of the total issued shares with voting rights. In contrast, support for candidate Park Yu-kyung, recommended by MBK and Yeongpoong, remained at just 27.9%.

Notably, it appears that foreign investors and retail shareholders overwhelmingly supported Candidate Baek. Among foreign investors and foreign institutional investors who participated in the vote, support for Candidate Baek reached 98.3%. Domestically, 79.1% of individual shareholders backed Candidate Baek, while domestic institutional investors excluding the National Pension Service (NPS), which exercised voting rights equally between both candidates, showed a support rate of 86.9%. Meanwhile, support for Candidate Park stood at only 20.9% among domestic individuals and 13.1% among domestic institutional investors excluding NPS.

The appointment of the independently elected audit committee member has been identified as the core agenda item of this extraordinary general meeting. While the election of independent directors saw both sides recommending two candidates each, resulting in all four being appointed, the race for the independently elected audit committee seat pitted the candidates recommended by each side against one another for a single position. Particularly, since the independently elected audit committee member is appointed under the "3% rule," which limits controlling shareholders' voting rights, the choice of general shareholders proved crucial.

The assessment from professional institutional investors also favored Coryo Zinc’s current management team in a clear victory. Eight out of nine major domestic and international proxy advisory firms, including ISS, Glass Lewis, and Sustainalytics, recommended approval for Candidate Baek's appointment. These firms highly evaluated Candidate Baek on grounds of professionalism, citing his qualifications as a certified public accountant in both South Korea and the United States, along with his 28 years of experience at Deloitte Touche Tohmatsu, where he gained expertise in audit and financial advisory services.

Industry observers widely believe that the current management team's accumulated trust through its operational performance over the years underpinned this decisive victory. Despite a two-year-long dispute over corporate control, Coryo Zinc recorded its highest-ever profit for the first half of this year since its founding. The company has also continued to pursue shareholder-friendly initiatives such as improving corporate governance. Analysts explain that even amid heightened uncertainty in the business environment due to the prolonged conflict, the management's ability to deliver results based on core business competitiveness earned positive evaluations from shareholders.

Long-term growth strategies, including the "Project Crucible" for building an integrated smelter in the United States and the "Troika Drive" focusing on renewable energy, green hydrogen, secondary battery materials, and resource recycling, are also cited as key factors behind strong support. Analysts suggest that shareholders have come to recognize the importance of maintaining management continuity, given that the current leadership is expanding the company's role within global critical mineral supply chains based on its smelting technology and operational capabilities.

Indeed, proxy advisory firms had previously reached similar conclusions in favor of the current management team. ISS emphasized that Coryo Zinc’s current management has maintained robust performance, including achieving profitability for 105 consecutive quarters despite MBK and Yeongpoong's hostile M&A attempts. Sustainalytics also viewed Candidate Baek's appointment as appropriate for enhancing shareholder value through the successful execution of long-term strategies such as the "Project Crucible" for constructing an integrated smelter in the United States.

An industry official stated, "Although MBK and Yeongpoong have consistently criticized Coryo Zinc’s corporate governance and launched attacks, ultimately a company must prove itself through performance and persuade stakeholders with its vision."

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*This content was translated by AI.