Seoul: Korea Zinc Co., the world's largest refined zinc smelter, has indicated the potential withdrawal of its contentious share sale plan, which is currently under investigation by the financial regulator. The company is set to hold an emergency board of directors meeting on Wednesday to resolve whether to pull back the existing plan and devise a revised version as requested by the Financial Supervisory Service (FSS), a company spokesperson confirmed via phone. According to Yonhap News Agency, Korea Zinc had announced on October 30 its intention to issue 3,732,650 shares, representing about 18 percent of its outstanding shares, with the aim of raising 2.5 trillion won (US$1.8 billion) at approximately 670,000 won per share. The market was taken by surprise by this announcement, as it followed closely on the heels of a significant share buyback that concluded on October 23. This buyback was intended to counter a takeover attempt by its largest shareholder, Young Poong Corp., along with private equity firm MB K Partners Ltd. Korea Zinc's move was largely seen as an attempt to accumulate more treasury stocks with voting rights in the ongoing battle over management control with Young Poong. The FSS raised concerns about the rights issue plan, highlighting a lack of transparency in the decision-making process, which could potentially harm investor interests. The financial regulator is reportedly concerned that using proceeds from the share sale to repay loans for the buyback might constitute unfair trading practices. The company stated that its goal was to expand its shareholder base through the proposed share issue to reduce potential disputes over management control. However, it admitted to failing to predict investor concerns or the financial authorities' correction request. "We will make an announcement in the not too distant future after reviewing our shareholders' concerns and the regulator's request," the company said in a statement. Currently, Young Poong and MBK hold a combined 39.83 percent stake in Kore a Zinc, while Chairman Choi Yun-beom and related parties own 35.4 percent. On Tuesday, Korea Zinc shares saw a 1.5 percent increase to 1,142,000 won, in contrast to the Korea Composite Stock Price Index's 1.9 percent loss.