[Seoul=Newsis] Reporter Kim Geum-bo: Korea Zinc is known to have held a provisional board meeting on the 30th, where they plan to decide on transferring some of their treasury shares to the employee stock ownership association. Employees were seen arriving for work at Korea Zinc headquarters in Jongno-gu, Seoul on this day. 2024.10.30.
[Seoul=Newsis] Reporter Yoo Hee-seok: Ahead of the Korea Zinc provisional shareholder meeting scheduled for the 23rd, the world’s largest sovereign wealth fund, Norway’s Government Pension Fund Global (NBIM), has expressed opposition to Korea Zinc’s proposal to introduce a cumulative voting system.
According to industry sources on the 19th, Norway’s Norges Bank Investment Management (NBIM), which operates the Government Pension Fund Global, announced on their website on the 18th their opposition to the introduction of the cumulative voting system and the limitation of the number of directors to 19 proposed by Korea Zinc.
Moreover, they only supported all 14 board candidates recommended by MBK Partners and Youngpoong, voting against all candidates recommended by Korea Zinc.
Previously, the largest public pension funds in the United States, CalPERS (California Public Employees’ Retirement System) and CalSTRS (California State Teachers’ Retirement System), had also opposed the introduction of the cumulative voting system.
NBIM emphasized the effectiveness and accountability of Korea Zinc’s board composition, arguing that reform is necessary as the current board is not fulfilling its fiduciary duties to shareholders.
NBIM specifically criticized the Korea Zinc board for restricting shareholders’ rights and failing to respond appropriately to their requests.
Additionally, NBIM assessed that Korea Zinc’s financial and strategic performance, risk management, and commitment to environmental and social responsibilities were unsatisfactory.
They expressed a negative stance toward current management, including Chairman Choi Yoon-beom, pointing out their ‘unacceptable treatment’ of shareholders. This appears to be influenced by allegations against Chairman Choi related to violations of capital market laws.
Meanwhile, the Norway Government Pension Fund, established in 1996, manages approximately 2,549 trillion won and holds 1.5% of shares in listed companies worldwide, making it a huge sovereign wealth fund.
It uses environmental, social, and governance (ESG) criteria for investments, placing significant importance on aligning long-term investment value with corporate social expectations.