Korea Zinc dispute must prioritize economic security, says Sustainvest CEO

Ryu Young-jae, CEO of Sustainvest, has urged that the ongoing management dispute at Korea Zinc be viewed through the lens of long-term industrial investment and economic security rather than mere shareholder value. Ahead of the extraordinary general meeting on September 9, Ryu cautioned that short-term financial logic—which he described as a ‘5-year clock’—could undermine the ‘30-year industry’ cycle required for large-scale manufacturing and smelting.

Ryu noted that while financial techniques like asset sales and dividends are standard, applying them to heavy industries can jeopardize essential investments in facilities, technology, and skilled labor. He highlighted Korea Zinc’s strategic importance as South Korea’s sole producer of antimony, a mineral critical to defense and semiconductor supply chains, especially following China’s export controls.

While not advocating for the unconditional protection of current management, Ryu proposed a system to evaluate the impact of ownership changes in companies holding national core technologies or strategic minerals on economic security. He also called on the National Pension Service, a major shareholder, to act as a long-term investor to balance the interests of short-term capital.