Korea Zinc "Paid-in capital increase to review after tender offer ends"

Regarding the controversy over the paid-in capital increase, Korea Zinc stressed that it reviewed the capital increase after the tender offer of treasury stocks ended on the 23rd of last month.

Regarding the background of the paid-in capital increase, Korea Zinc said it expected the stock price to return to the pre-tender level after the end of the tender offer, but the possibility of delisting was increasing due to a sharp drop in trading volume from the 22nd of last month.

Earlier, the Financial Supervisory Service launched an investigation, saying that if the board of directors of Korea Zinc planned to acquire and incinerate treasury stocks through open purchase and repay them with paid-in capital increase together, it would be a fraudulent transaction.

Regarding allegations that Mirae Asset Securities, the organizer of the tender offer and capital increase, conducted due diligence on the capital increase from the 14th, he explained that the period was misstated while using the results of the previous due diligence for the post-capital increase.

Korea Zinc said it would resolve the controversy by accurately and sincerely explaining the facts to the authorities and the market, saying it would cause unnecessary misunderstanding to investors.