ISS, Glass Lewis, Sustinvest among firms recommending Baek In-gyu
Only one adviser backs MBK Partners, Young Poong's nominee Park Yu-kyung
Seven of eight major domestic and international proxy advisory firms have recommended shareholders support Baek In-gyu, the independent director candidate nominated by Korea Zinc's board for an audit committee seat at the company's extraordinary general meeting scheduled for Sept. 9. Only one firm backed Park Yu-kyung, the rival candidate put forward by MBK Partners and Young Poong.
According to industry sources Sunday, among the major proxy advisers that have released analysis reports on Korea Zinc's extraordinary shareholder meeting agenda, ISS, Glass Lewis, Egan-Jones Proxy Services, PIRC, Sustinvest, the ESG Research Institute and Korea Proxy Voting Advisory all recommended voting in favor of Baek. All seven also recommended voting against Park. The Korea Institute of Corporate Governance and Sustainability (KCGS) was the only firm to oppose Baek and recommend Park.
The advisers cited Baek's expertise in accounting, auditing and internal controls — the core competencies required of an audit committee member — as the primary reason for their support.
Baek holds certified public accountant qualifications in both South Korea and the United States and spent nearly 30 years as a partner at Deloitte Anjin, accumulating extensive experience in audit and financial advisory work. The advisers appear to have concluded that his background could strengthen the audit committee's oversight capabilities at a time when professional scrutiny of accounting practices and internal accounting management systems has become increasingly important.
Korea Proxy Voting Advisory highlighted the absence of a certified public accountant or other accounting specialist on the current audit committee, emphasizing the need to bolster expertise through Baek's appointment. Glass Lewis also viewed his broad experience in accounting and internal controls favorably.
In addition, domestic and international advisers noted the importance of management continuity. With Korea Zinc pursuing large-scale, long-term projects — including the construction of an integrated smelter in the United States — amid an accelerating global supply chain realignment, the advisers judged that continuity in business strategy is essential to stable operations and enhanced corporate value.
"We will continue to strengthen the independence and expertise of the board, actively respond to the realignment of global critical mineral supply chains, and do our utmost to advance future growth projects — including the US integrated smelter — without disruption, in order to enhance corporate and shareholder value," a Korea Zinc official said.
Meanwhile, Korea Zinc will hold its extraordinary general meeting at 10 a.m. Sept. 9 at the Mondrian Hotel in Yongsan-gu, Seoul. The agenda items are an amendment to the articles of incorporation to expand separately elected audit committee members, the election of four directors by cumulative voting, and the election of an independent director to serve as an audit committee member.
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