SEOUL,South Korea,Jan. 20,2025 --Korea Zinc has announced that the National Pension Service (NPS) has decided on its voting direction for Korea Zinc's Extraordinary General Meeting (EGM). As the world's third-largest pension fund and Korea's representative public pension,this decision will no doubt carry substantial significance.

On the 17th,the NPS Trustee Responsibility Committee convened and decided to support key agenda items proposed by Korea Zinc's current management,including the introduction of a cumulative voting system and capping the number of directors at 19. This aligns with the recommendations of global proxy advisory firms like ISS and Glass Lewis,marking a clear affirmation of the stance that maintaining the current management structure is preferable.

This decision holds implications beyond a simple institutional investor's resolution. Politicians from both ruling and opposition parties have emphasized the need to protect Korea Zinc,a key contributor to national industry. Members of the National Assembly's Industry Committee have pointed out the risks of technological leakage to countries like China,calling on the government to address the issue proactively.

Concerns over the Korea Zinc situation have also been raised in U.S. political circles. U.S. Representative Eric Swalwell,co-chair of the Critical Minerals Caucus,sent an official letter to the Department of States expressing concerns that the China Investment Corporation (CIC) is among the key investors in MBK Partners. He urged an evaluation of the Korea Zinc situation in consideration of the shared national security interests of South Korea and the United States. Former White House National Security Advisor Robert O'Brien also warned in a media article of the risks of key mineral technologies being transferred to China if Korea Zinc is sold.

A notable aspect is that the NPS is a major limited partner (LP) in MBK Partners. As the most influential investor in Korea's private equity sector,the NPS's decision reflects considerations beyond investment interests,likely reflecting broader national industrial policy concerns.

A Korea Zinc official stated,"This decision by the NPS recognizes the importance of Korea Zinc's sustainable development and technological competitiveness as a key component of national industry. We will continue to enhance shareholder value and contribute to national industrial development."

Industry experts predict that this decision will serve as an important signal for future policies aimed at protecting domestic key industries. Considering the symbolic nature of the NPS as a public institution,this decision transcends a routine voting action and carries implications for consensus among industrial policy.