Court Rules Voting Rights Restriction on Young Poong as Unlawful

Most Resolutions from Korea Zinc's Extraordinary Shareholders'Meeting Suspended… A Big Win forYoung Poongand MBK Partners

A Green Light for Securing Control Over Korea Zinc

SEOUL, South Korea,March 8, 2025/PRNewswire/ -- The court has ruled that restrictingYoung Poong'svoting rights at Korea Zinc's extraordinary shareholders'meeting onJanuary 23was unlawful, suspending the effectiveness of most resolutions passed, including the resolution to impose a cap on the number of directors.

Furthermore, asYoung Poong'svoting rights restriction was deemed illegal, the duties of the seven Korea Zinc-nominated directors, who were appointed through a process marred by significant procedural defects, have also been suspended.

OnMarch 7, the Seoul Central District Court's Civil Division 50 grantedYoung Poongand MBK Partners'injunction request to suspend the resolutions of Korea Zinc's extraordinary shareholders'meeting, ruling that"Under Article 369, Paragraph 3 of the Commercial Act, restrictingYoung Poong'svoting rights in Korea Zinc is unlawful."The court consequently suspended the effectiveness of the resolutions on:

Article 1-2: Establishing a cap on the number of directors

Article 1-4: Stock split

Article 1-6: Appointment of the board chair from among outside directors

Article 1-7: Amendment of the dividend record date

Article 1-8: Introduction of quarterly dividends

Additionally, the seven directors nominated by Korea Zinc have been prohibited from exercising their duties as outside directors.

With this ruling, while the resolution to amend the articles of incorporation to introduce cumulative voting (Article 1-1) remains effective, the cap on the number of directors (set at 19) has been nullified, and the seven Korea Zinc-nominated directors can no longer perform their duties.

This decision paves the way forYoung Poongand MBK Partners, the largest shareholders, to secure control over Korea Zinc.

Young Poongand MBK Partners welcomed the court's decision to grant the injunction.

At Korea Zinc's annual general meeting, expected in late March, a new board of directors will be elected through cumulative voting.Young Poongand MBK Partners have already submitted a shareholder proposal nominating 17 director candidates.

A representative fromYoung Poongand MBK Partners stated,"We will make every effort to restore corporate governance, shareholder value, and corporate value at Korea Zinc through a fair and transparent annual general meeting."

SOURCE MBK Partners