Seoul: Korea Zinc Co., the world's leading refined zinc smelter, announced plans on Wednesday to convene a shareholders meeting focused on addressing management control issues. This decision followed the cancellation of a proposed share sale that had drawn scrutiny from the financial regulator earlier in the day. According to Yonhap News Agency, the Financial Supervisory Service had raised concerns over the share sale plan, highlighting a lack of clarity in the decision-making process that could potentially harm the interests of existing shareholders. Korea Zinc's upcoming extraordinary shareholders meeting is intended to resolve the ongoing dispute with its largest shareholder, Young Poong Corp., and private equity firm MBK Partners Ltd., regarding management rights. The date for the meeting has not yet been determined. During a press conference, Korea Zinc Chairman Choi Yun-beom emphasized the company's commitment to rallying support from institutional investors, individual shareholders, and other market participants to thwart the hostile takeover attempt from the Young Poong side. The company disclosed plans to implement measures designed to enhance board independence, improve governance structure, and safeguard the interests of minor shareholders. Choi also stated his intention to step down as chairman of the board to facilitate the appointment of an outside director, and plans to invite a foreign, non-executive director to improve communication with international shareholders. MBK and Young Poong welcomed Korea Zinc's decision to retract its share sale plan, describing it as "belated but right." They expressed their intent to appoint new directors to the board during the shareholders meeting to ensure transparency in the smelter's governance structure. Following the announcement, Korea Zinc's shares dropped 14 percent to 981,000 won on Wednesday, significantly underperforming the broader Korea Composite Stock Price Index, which fell by 2.6 percent. Previously, on October 30, Korea Zinc had revealed plan s to issue 3,732,650 shares, accounting for approximately 18 percent of its outstanding shares, with the goal of raising 2.5 trillion won (US$1.8 billion) at 670,000 won per share. The unexpected announcement came shortly after the conclusion of a significant share buyback on October 23, which aimed to counteract the takeover bid by Young Poong and MBK. This move was perceived as an effort by Korea Zinc to accumulate more treasury stocks with voting rights in the ongoing power struggle with the Young Poong faction. At present, Young Poong and MBK collectively hold a 39.83 percent stake in Korea Zinc, while Chairman Choi and associated parties maintain a 35.4 percent stake in the smelter.