Global proxy advisory firm Institutional Shareholder Services (ISS) has recommended that Korea Zinc shareholders vote in favor of Baek In-gyu, the audit committee candidate nominated by the company's board, while voting against Park Yu-kyung, the candidate put forward by MBK Partners and Youngpoong.
According to industry sources Tuesday, ISS published its proxy analysis report on Korea Zinc's extraordinary general meeting Monday, recommending a "FOR" vote on Baek — the board's nominee for the independent director seat that carries audit committee membership — and an "AGAINST" vote on Park, the MBK-Youngpoong nominee, ahead of the shareholder meeting scheduled for Sept. 9.
ISS said Baek's expertise in accounting, auditing and internal controls more directly aligns with the key tasks currently facing Korea Zinc's audit committee.
In its report, ISS noted that Baek had accumulated broad experience in accounting, auditing, financial advisory and internal controls through senior roles at Deloitte Korea, and cited that background as the basis for its recommendation.
ISS also said it found no evidence that the nomination process conducted by Korea Zinc's all-independent outside director nomination committee was inappropriate or inconsistent with generally accepted governance standards. Korea Zinc had opened the nomination process to shareholders above a certain ownership threshold before the committee reviewed and ultimately selected Baek.
Baek, whom ISS endorsed, previously served as head of the ESG Center at Deloitte Anjin and as board chair, and currently holds a position as an industry-academia cooperation professor in the Department of Data Knowledge Service Engineering at Dankook University. ISS said it expects Baek to provide independent oversight on risk management and audit committee matters based on that track record.
Ahead of the ISS announcement, domestic proxy adviser Sustinvest had also recommended a vote in favor of Baek on Thursday, similarly concluding that he holds stronger expertise directly tied to the audit committee's core duties — including financial reporting, accounting and internal controls.
"While no meaningful difference in independence was found between the two candidates, Baek In-gyu is relatively more suitable in terms of accounting and auditing expertise directly relevant to the duties of an audit committee member, and the assessment of board composition and long-term shareholder value also aligns with his appointment," Sustinvest said.
Meanwhile, Korea Zinc disclosed that it posted consolidated revenue of approximately 12.45 trillion won ($9.01 billion) and operating profit of 1.33 trillion won in the first half of this year — increases of 62.5 percent and 151.5 percent, respectively, from the same period a year earlier, marking the best half-year earnings in the company's history.
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