As Korea Zinc prepares for its extraordinary shareholders' meeting, major proxy advisory firms are rallying behind Chairman Choi Yoon-bum. Following recommendations from ISS, Glass Lewis, and Sustainvest, the Korea ESG Institute has also advised support for Baek In-kyu, the candidate recommended by the Korea Zinc board, ahead of the upcoming vote on September 9.
On August 28, the Korea ESG Institute released a report recommending approval of Baek's appointment while opposing the nomination of Park Yoo-kyung, who was put forward by MBK Partners and Youngpoong.
The Korea ESG Institute determined that Baek's expertise aligns more closely with the responsibilities of an audit committee member. Baek has extensive experience in external auditing, accounting reviews, and financial due diligence from his long tenure at an accounting firm.
While the institute acknowledged that Park also possesses the necessary expertise in financial analysis and corporate governance, it concluded that Baek's practical experience in external auditing and internal controls makes him a better fit to enhance the current audit committee's expertise.
Given the significant representation of MBK and Youngpoong on the board, the institute emphasized that the selection of audit committee members should prioritize expertise that can effectively strengthen the committee's functions over maintaining a balance of power between the two sides.
The recommendation also considered Korea Zinc's ongoing large-scale investments, including the 'Project Crucible' for a new integrated smelting facility in the U.S. As the scale of business and investments expands, the role of the audit committee in ensuring the reliability of financial reporting and internal controls becomes increasingly critical.
The Korea ESG Institute stated, "The appointment of Baek In-kyu is not merely a replacement of existing accounting and finance experts but an addition of practical expertise in external auditing, accounting, and internal controls, which will enhance the audit committee's capabilities. In the long term, this can contribute to improving the reliability of financial reporting and the effectiveness of internal controls, thereby protecting corporate and shareholder value."
Previously, global proxy advisory firms such as ISS and Glass Lewis, along with domestic firms like Sustainvest, PIRC, and Lee Gun-Jones Proxy Services, have expressed support for Baek's appointment, citing his expertise in accounting, auditing, and internal controls as key reasons.
Meanwhile, Chairman Choi's side has been engaged in a management dispute with the largest shareholders, Youngpoong and MBK Partners, for the past two years. As the extraordinary shareholders' meeting on September 9 approaches, tensions between the two sides are escalating once again.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.