Seoul: South Korea's financial regulator has intervened in Korea Zinc Co.'s proposed rights issue plan, intended to thwart a takeover attempt by its largest shareholder in conjunction with a private equity firm. The Financial Supervisory Service (FSS) has instructed Korea Zinc to provide a revised share sale plan within three months, citing concerns about potential harm to investor interests in the current proposal, according to a company spokesperson contacted via phone.According to Yonhap News Agency, Korea Zinc, the world's leading refined zinc smelter, had announced on October 30 its intention to issue 3,732,650 shares, representing about 18 percent of its outstanding shares, aiming to raise 2.5 trillion won (approximately US$1.8 billion) at around 670,000 won per share. The subscription period was set for December 3-4, with 20 percent of the new shares reserved for employee subscriptions on December 3.The rights issue was largely perceived as Korea Zinc's strategic move to acquire more treasury stock s with voting rights amid the ongoing power struggle with Young Poong and MBK Partners. Presently, Young Poong and its affiliates hold a 38.47 percent stake in Korea Zinc following a tender offer, while Choi and associated parties possess a 35.4 percent stake after a buyback.The announcement of the regulatory intervention led to a 4.3 percent drop in Korea Zinc's share price, reaching 1,203,000 won by 11:28 a.m., significantly underperforming the broader Korea Composite Stock Price Index, which saw a marginal increase of 0.03 percent.
- October 12, 2026
