Company meets all 15 key indicators in 2025 corporate governance report
Compliance rate rises from 80% last year to 100% in one year
Improvements include four-week AGM notice, dividend predictability
Board independence and shareholder rights protections strengthened
Korea Zinc said Monday it has satisfied all 15 key indicators in its 2025 Corporate Governance Report, the result of improvements to shareholder meeting notice timelines, dividend predictability and board independence. The key indicators serve as a benchmark for assessing the governance standards of listed companies, covering shareholder rights protection, board independence and internal control systems.
Korea Zinc recorded an 80% compliance rate last year, already above the Kospi-listed company average of 54.3%, but addressed its remaining gaps to reach 100% within a year.
The newly satisfied indicators this year include issuing the shareholder meeting notice at least four weeks in advance, holding the annual general meeting outside peak scheduling dates and providing cash dividend predictability. Korea Zinc announced the notice for its 52nd annual general meeting on Feb. 23, 29 days before the meeting date, giving shareholders adequate time to review agenda items.
The company also scheduled the AGM to avoid peak dates when many companies hold meetings simultaneously. It offered both electronic voting and proxy solicitation to make it easier for shareholders to exercise their voting rights, and disclosed an English-language notice of the meeting resolution for foreign investors.
Dividend procedures were also revised. For last year's year-end dividend and this year's quarterly dividends, the board first fixed the cash dividend amount before setting the record date, allowing investors to assess the payout before deciding whether to invest and improving the predictability of dividend information.
On the board side, Korea Zinc strengthened independence and diversity. The company appointed an outside director as board chair and ensured outside directors hold a majority of board seats. The board includes four female outside directors and two foreign directors. The company has also introduced a cumulative voting system to protect the rights of minority shareholders.
The scope of board evaluation disclosures was also expanded. Korea Zinc assessed the full board, its committees and individual directors, and disclosed the evaluation process, results and areas for improvement. Executive performance evaluations and compensation structures were also disclosed in detail to enhance board accountability.
Investor communications were expanded as well. Last year, Korea Zinc held 17 investor engagement sessions, including domestic and international conference calls, in-person meetings and securities firm conferences. When necessary, senior executives met directly with investors to discuss business strategy and ESG matters.
Measures to strengthen audit body independence were also included. Korea Zinc holds separate communications between its external auditor and audit committee at least once per quarter. The company also requires audit committee approval for non-audit services provided by the auditor and discloses the results transparently.
Korea Zinc said it plans to continue improving its governance framework and position itself as a critical minerals company that meets global standards.
"Achieving 100% compliance on the corporate governance report's key indicators is the fruit of our genuine efforts to improve governance in line with the expectations of shareholders and the market," a company official said. "It is all the more meaningful in that it sharply differentiates us from Youngpoong and MBK Partners, which have been pursuing a hostile takeover for years."
The official added that all employees would continue working together to advance board-centered transparent decision-making, protect shareholder rights and build a governance framework that meets global standards.
kwater@heraldcorp.com
