MBK-Young Poong expands foothold in Korea Zinc board battle, narrows gap with current management

Korea Zinc's general shareholders' meeting takes place at Koreana Hotel in Seoul, Tuesday. Joint Press Corps

The MBK Partners-Young Poong alliance gained greater influence over Korea Zinc at a general shareholders’ meeting Tuesday, securing two board seats and narrowing its gap with Chairman Choi Yun-beom’s side to four, industry officials said.

The outcome strengthens the alliance’s position in its more than year-and-a-half-long push for management control, enabling it to more effectively challenge Choi’s leadership.

Of the five seats up for election, three went to candidates backed by Choi and two to those supported by the MBK-Young Poong coalition.

While Choi’s camp retained control of the board and defended its management rights, the board composition shifted from 11-4 to 9-5.

Although six directors' terms had expired, Choi’s side suggested appointing five and selecting the remaining one separately as an audit committee member at a future extraordinary meeting.

Market watchers said that although Choi still holds a majority, the latest reshuffle signals a meaningful shift in board dynamics, with governance moving toward a more balanced structure with stronger internal checks.

In terms of shareholding, Choi and his allies are estimated to hold 37.9 percent, compared with 41.1 percent held by the MBK-Young Poong side. The National Pension Service (NPS) holds 5.2 percent, while Hyundai Motor Group owns about 5 percent.

Following the shareholders’ meeting, the alliance’s representation on Korea Zinc’s board rose from four to five directors, increasing its share from 26.7 percent to 35.7 percent and strengthening its voice in key decisions.

The shift comes after the NPS declined to back Choi’s reappointment, citing concerns over potential damage to corporate value and shareholder rights.

Several proxy advisory firms at home and abroad, along with the California Public Employees’ Retirement System, also opposed the proposal, which suggests that institutional investors played a critical role in reshaping the board.

“Although Choi maintains formal control, the new board composition will make unilateral decision-making difficult, with major issues likely to face closer scrutiny,” an investment banking industry source said.

The MBK-Young Poong alliance said the vote marks progress toward improved governance at the world’s largest zinc smelter.

“We will contribute to shareholder value and promote more transparent decision-making,” it said.