The Korean Corporate Governance Forum, led by Lee Nam-woo, has called for LG Chem, Hanwha, and Hyundai Motor to divest their shares in Korea Zinc as part of their compliance with the third amendment of the commercial law which mandates the burning of treasury stocks. This initiative was revealed on March 26, coinciding with the regular shareholder meeting season, and aims to address governance issues surrounding Korea Zinc. The forum emphasizes that the practice of creating cross-share holdings through treasury stock exchanges undermines the rights of common shareholders, thus urging necessary reforms in Korea Zinc's governance.

The forum commended Korea Zinc's board for accepting a shareholder proposal from Youngpoong and MBK Partners, who are embroiled in a power struggle with current Chairman Choi Yun-beom. However, they expressed disappointment over the board's refusal to appoint an interim chair to ensure a fair shareholder meeting. The forum advocates for the normalization of Korea Zinc's governance and recovery of shareholder value through measures such as clearly stating the directors' fiduciary duties in the company's charter, ensuring intermediate dividends, improving board operating methods, and enhancing shareholder value through stock splits.

Additionally, the forum pointed out that past share exchanges with companies like LG Chem and Hanwha undermine the interests of general shareholders, noting that LG Chem held 2% of Korea Zinc and Hanwha had an 8% stake through similar practices. The forum reiterated that the recent legislative move to mandate the burning of treasury stocks is aimed at preventing violations of shareholder rights and ensuring the integrity of corporate governance within leading Korean companies. This case highlights the ongoing tensions between corporate governance reform and traditional practices in South Korea's corporate landscape.