SEOUL: Korea Zinc Co Ltd, the world’s largest refined zinc smelter, has announced plans to cancel ₩1.82 trillion (US$1.29 billion) worth of its own shares this year, in a move aimed at enhancing shareholder value and reinforcing management stability.
The company confirmed on Thursday that it will retire a total of 2.04 million treasury shares—representing 9.85% of its total issued shares—over three phases scheduled for June, September, and December 2025.
The announcement follows an extensive buyback conducted in 2024, during which Korea Zinc repurchased 2.08 million shares to fend off a takeover attempt led by its largest shareholder, Young Poong Group, in alliance with private equity firm MBK Partners.
The corporate struggle escalated in September 2024, when the Young Poong-led group launched a tender offer to increase its stake in the zinc producer. In response, Korea Zinc secured backing from Bain Capital and proceeded with a large-scale buyback to consolidate its control.
In a critical development in March this year, a Seoul court ruled to restrict the voting rights of Young Poong in appointing new board members, allowing Korea Zinc’s CEO to retain his position and secure the board’s composition at the company’s annual general meeting.
The share cancellation programme reflects Korea Zinc’s strategy to streamline its capital structure, support its share price, and reinforce its autonomy in the face of external shareholder pressure.
–Yonhap
