Korea Zinc chairman's camp strengthens board control after winning audit committee seat

Korea Zinc Chairman Choi Yun-beom’s camp prevailed in the latest showdown over management control of the zinc smelter against the MBK Partners-Young Poong alliance, Wednesday, securing an audit committee seat that further strengthened its majority on the board. The alliance said it accepted the outcome but stressed that the newly elected board members must remain genuinely independent. “An audit committee member is not a defensive seat for protecting Choi’s control, nor is an independent director a trophy to be claimed by either side,” it said in a statement. “Regardless of who nominated them, all directors must exercise independent judgment and perform their duties in the interests of Korea Zinc and all of its shareholders.” The election was the most closely watched item on the agenda at Wednesday’s extraordinary shareholders’ meeting. Korea Zinc needed to add a second member to its audit committee, a requirement that takes effect Thursday under the revised Commercial Act. The company currently has one such member, Suh Dae-won, who was backed by Choi’s camp last year.