Activists pushing for the ouster of Korea Zinc Co. Chairman Yun B. Choi face a pivotal test Tuesday as shareholders vote on his re-election. Choi’s bid has suffered significant setbacks, including abstentions from the National Pension Service (NPS) and a vote against him from CalPERS, the largest US public pension fund.

While Choi retains board majority control, the outcome hinges on minority investors. A victory for the activist alliance led by MBK Partners and Young Poong Corp., which controls over 41% of voting shares, would mark a rare shift in Korea’s management-friendly corporate culture. The stakes extend beyond one board seat, raising questions about shareholder rights and governance.

Choi’s leadership is under intense scrutiny following the activists' 2024 hostile takeover attempt, which alleged executive misconduct and excessive debt. The NPS cited concerns over 'past records of infringement of corporate value and shareholder rights' in its stance. Global proxy advisers offer conflicting guidance, with ISS recommending against Choi while Glass Lewis supports him.

The vote occurs as Korea Zinc advances a critical US smelter project backed by the US government, adding urgency to the governance debate.