Youngpoong recorded an operating loss of 18.9 billion won in the third quarter, turning to a deficit in just one quarter.

3rd Quarter Performance Announcement: Sales of 656.7 billion KRW
Attributed to Reduced Operation Rate at the Seokpo Smelter, The ‘Yeongpoong Seokpo Smelter,’ a zinc smelter located in Seokpo-myeon, Bonghwa-gun, Gyeongbuk, at the uppermost region of the Nakdong River. Trees have withered on the mountain behind the smelter, forming a bald mountain. Busan Ilbo DB,
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, ‘Yeongpoong has turned to a deficit in a single quarter, recording poor results for the third quarter.’,
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, According to the Electronic Disclosure System of the Financial Supervisory Service on the 14th, Yeongpoong recorded sales of 656.7 billion KRW and an operating loss of 17.9 billion KRW for the third quarter. Yeongpoong succeeded in turning a profit in the second quarter but has reverted to loss. The decrease in the operating rate of the Seokpo smelter is interpreted as causing the continued deterioration of performance.,
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, ‘This business performance draws attention as it is the first financial result announced after Yeongpoong and MBK declared a hostile M&A against Korea Zinc on September 13. In the upcoming extraordinary shareholders’ meeting, there is significant potential for a proxy battle between the camp of Korea Zinc’s Chairman Choi Yoon-beom and Yeongpoong-MBK. The third-quarter results of both companies are expected to be a key evaluation criterion for the shareholders.’,
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, ‘In contrast, Korea Zinc recorded sales of 3.2066 trillion KRW and an operating profit of 149.9 billion KRW on a consolidated basis for the third quarter, demonstrating a stark contrast. The industry is keen on how much sales and operating profit Yeongpoong, which has a similar business structure to Korea Zinc, will achieve under the same business environment.’,
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, ‘The results of both companies can be seen as a barometer of management capabilities. In particular, as Yeongpoong and the MBK side are questioning the investments by Korea Zinc, such as those in Ignio, if Yeongpoong’s investments or management performance are lacking, it could significantly undermine their justification for acquiring Korea Zinc.’,
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, ‘Analysis suggests that the continued weak performance of Yeongpoong’s core operation, the Seokpo Smelter, is due to various environmental constraint-related sanctions and major accidents, with the plant’s operation rate reaching an average of only 58.4% based on cumulative data from the first half of the year.’,
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, ‘Especially, the Seokpo Smelter recently received a confirmed ruling from the Supreme Court for a 60-day suspension of operations. Given that Seokpo Smelter accounts for 37% of domestic zinc production, there are growing concerns in the steel, automotive, and other industries; Yeongpoong has reportedly expressed its intention to increase production and supply to its customers before the suspension takes effect.’,
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, ‘An industry insider commented, “As Yeongpoong is attempting an M&A with MBK, claiming they can manage better than the current management of Korea Zinc, they likely put a lot of effort into improving the third-quarter results. During the process where Korea Zinc shareholders exercise their voting rights at the shareholders’ meeting, there’s no choice but to compare the management capabilities of both sides’ management teams,” he predicted.’,
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