MUST Asset Management Launches Activist Campaign on Young Poong Corporation

• MUST Asset Management launches public campaign targeting Young Poong Corporation, addressing its undervaluation relative to its liquidation value.
• Young Poong agrees to meet with MUST in December to discuss the proposals.
• Young Poong is advocating governance reforms at Korea Zinc but has yet to implement similar measures internally.
• MUST sees this as a timely opportunity to push for meaningful governance improvements.

SEOUL, South Korea--(BUSINESS WIRE)--MUST Asset Management (“MUST”), a leading long-only fund based in Seoul, Korea, announced on November 25 the launch of a shareholder activism campaign targeting Young Poong Corporation, one of the most undervalued publicly listed companies in Korea.

MUST, which holds over 2% of Young Poong’s shares, has previously sought engagement through private letters and an in-person meeting. However, due to limited responsiveness, MUST has taken the campaign public to advocate for improved corporate governance and shareholder policies.

This campaign is timely as Young Poong, while advocating governance reforms at Korea Zinc, has retained 6.62% of its own shares as treasury stock for over a decade without retiring them. MUST views this as a critical opportunity to push for governance reform, leveraging the same standards Young Poong is demanding from Korea Zinc.

MUST outlines five key recommendations to unlock value and improve governance at Young Poong:

1. Full Retirement of Treasury Shares: Retire all treasury shares and amend the articles of incorporation to prohibit holding treasury shares without retirement.
2. Bonus Issue or Stock Split: Improve liquidity through a 1,000% bonus issue or a 10-to-1 stock split.
3. Transparency on Korea Zinc Put Option: Disclose details of the put option agreement with MBK Partners, including the number of shares covered, timing of exercise, and allocation ratios.
4. Revaluation of Prime Real Estate: Update valuations of prime real estate holdings in central Seoul, which have not been reappraised in years despite significant market appreciation.
5. Commitment to Shareholder Returns: Commit at least 30% of potential cash inflows from the Korea Zinc put option to shareholder returns, such as dividends or share buybacks.

“We believe Young Poong has immense potential to improve its corporate governance and unlock shareholder value,” said Dooyong Kim, CEO of MUST Asset Management. “Our recommendations aim to position Young Poong as a leader in best practices within Korea’s capital markets.”

Following the release of its first open letter, Young Poong has agreed to hold a face-to-face meeting with MUST representatives in the latter part of the first week of December. At this meeting, both parties aim to engage in an open and honest dialogue to develop practical solutions for enhancing shareholder value and improving governance. In response to this development, MUST has decided to temporarily pause its public campaign to focus on productive discussions.

MUST plans to share the details of any agreements reached after the December meeting.