MBK Partners: Welcoming the Court’s Decision to Prohibit Cumulative Voting for Director Appointments

(BUSINESS WIRE) -- MBK Partners and Young Poong, the largest shareholders of Korea Zinc, issue the following statement regarding today’s decision by the Seoul Central District Court’s Civil Division 50 to grant an injunction prohibiting the use of cumulative voting for director appointments at Korea Zinc:

MBK Partners and Young Poong welcome the court’s decision to prohibit cumulative voting and view this outcome as a natural and lawful conclusion.

The cumulative voting request filed by Yumi Development, for the sole purpose of securing Chairman Yoon Bum Choi’s position, failed to meet the procedural requirements outlined in Article 382-2 of the Korean Commercial Act.

The court ruled that while Yumi Development submitted the cumulative voting request on December 10, Korea Zinc’s Articles of Incorporation at that time explicitly stated, “the cumulative voting system shall not apply.” As such, the request violated Article 382-2, Paragraph 1, of the Korean Commercial Act and was deemed unlawful.

This pivotal court decision signifies a turning point for governance reform at Korea Zinc. The upcoming extraordinary general meeting, scheduled for January 23, is expected to serve as the foundation for meaningful change to Korea Zinc’s governance structure, including a comprehensive board restructuring and the introduction of an executive officer system.

MBK Partners and Young Poong remain committed to ensuring that the extraordinary general meeting on January 23 is conducted with the utmost fairness and transparency through a straightforward voting method.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250121301911/en/