Global industry leader, **Korea Zinc**, the world’s largest refined zinc producer, proudly announced its full compliance with all 15 core **corporate governance** indicators in 2025. This significant achievement marks an improvement from the previous year and notably positions the company ahead of its rival, **Young Poong**, amidst an ongoing contest for **management control**.
According to the company’s 2025 **Corporate Governance Report**, released earlier this week, **Korea Zinc** attained 100 percent compliance with the Korea Exchange’s crucial **governance indicators**. This represents a substantial increase from the 80 percent compliance rate reported in its 2024 assessment.
Korea Zinc confirmed it has successfully addressed all previously unmet items. These include issuing **shareholders meeting notices** a minimum of four weeks in advance, strategically avoiding scheduling **annual general meetings** on peak dates, and enhancing the predictability of **cash dividend payments** for investors.
**Korea Zinc** notably issued the announcement for its 52nd **annual general meeting** 29 days before the event. To foster greater **shareholder participation**, it provided both electronic voting and proxy solicitation services. Furthermore, the company has expanded its **English disclosures** to better serve **foreign investors** and improve their access to vital company information.
The firm’s **dividend policy** underwent a **shareholder-friendly** revision. **Korea Zinc** announced that its board will now determine **cash dividend amounts** prior to setting the **dividend record date** for both annual and quarterly dividends, providing investors with significantly greater visibility regarding payouts.
Positive assessments were also received for **Korea Zinc**’s **board independence** and **diversity**. An outside director now serves as the chair of the board, with independent directors constituting a majority of its members. The board’s composition further highlights its commitment to diversity, including four female directors and two foreign nationals.
Beginning in 2025, the company implemented **cumulative voting**, a strategic move designed to reinforce **minority shareholder rights**.
In stark contrast, **Young Poong** — a significant shareholder of **Korea Zinc** alongside private equity firm MBK Partners — reported a **governance compliance rate** of 60 percent, which remained unchanged from the prior year, according to its official filing.
**Young Poong** failed to meet six crucial **governance indicators**. These include the timely issuance of **shareholder meeting notices** four weeks beforehand, avoiding congested shareholder meeting dates, enhancing **dividend predictability**, establishing a clear **chief executive succession policy**, adopting **cumulative voting**, and implementing robust policies to prevent the appointment of executives implicated in actions that could harm **corporate value** or **shareholder rights**.
**Young Poong**’s report further indicated that no exclusive meetings for **outside directors** were convened last year, contrasting sharply with **Korea Zinc**’s four such dedicated meetings.
According to **Young Poong**, separate meetings for **outside directors** were deemed unnecessary. The company asserted that their opinions are respected, and their **independence** is adequately ensured within its current **board structure**.
**Young Poong** also notably abstains from conducting **individual evaluations** for its **outside directors**.
The company rationalized this by explaining that such assessments could potentially generate political tensions within the **board**, given that only the four **outside directors**, and not the two internal directors, would undergo evaluation.
However, certain **industry officials** have questioned this approach, emphasizing that **individual evaluations** of **outside directors** are broadly considered a vital **governance mechanism** for strengthening **board accountability** and **independence**.
This **governance issue** has gained heightened importance as **Korea Zinc** continues to be engaged in a **proxy fight** with **Young Poong** and **MBK Partners**.
The **Young Poong-MBK alliance** currently holds approximately 46 percent of **Korea Zinc’s shares**. Since initiating a tender offer in September 2024, the alliance has actively sought to challenge the control of **Korea Zinc** Chair Choi Yun-beom. In this intensifying contest, **corporate governance** has become a pivotal issue, with both factions vying for the crucial support of **shareholders**.
