CEO Message for 2024

I would first like to express my gratitude to my colleagues at Korea Zinc and our group
of companies who dedicated their hard work throughout 2023 to propel us forward.

In 2024, we celebrate the momentous 50th anniversary of Korea Zinc, founded on August 1, 1974. At that time, South Korea’s population was approximately 34 million. Remarkably, by 1974, the country had successfully elevated itself above the poverty line, achieving a per capita income of US$401, that is, more than US$1 per day on average for each person. It was an achievement that came just two decades after the devastating Korean War. It was also a year marked by various historic events. On August 15, tragedy struck as First Lady Yuk Young-soo lost her life in a failed attempt to assassinate President Park Chung-Hee during the Korean Independence Day ceremony.

It was the year that saw the inauguration of Seoul’s first subway line and the launch of Saemaul Express service on the Gyeongbu Line. December, 1974, was the debut of the beloved Orion Choco Pie. The year preceding my birth, 1974, was undeniably a remarkable time not only for Korea Zinc but for our entire nation. It bore witness to an array of news, both somber and joyful, all against the backdrop of a rapidly changing social landscape.

In 1973, just one year prior to the establishment of Korea Zinc, Choi Chang-gurl, our Honorary Chairman, returned to Korea after a seven-year sojourn in the United States. Having completed his MBA at Columbia University in New York, he embarked on a professional journey with Mobil, a prominent American petroleum and chemical company, where he served in the accounting department for three years. This choice was influenced by the visionary founder of Korea Zinc, Choi Ki-ho, who impressed upon him that “It is only when one has been paid a salary by strangers that he realizes the value of hard work and the preciousness of money.” At the behest of his father, he returned to Korea to become a founding member of Korea Zinc at the age of 33. My father has never gone into the minutiae of his entrepreneurial journey with me–I remain in the dark about the challenges they encountered, the trials they surmounted, and the motivations that drove him. Remembering myself at 33, I can only imagine the self-doubt, trepidation, and loneliness he must have grappled with.

Reflecting on the state of South Korea in 1974, it becomes evident how formidable the task must have been for Korea Zinc, a fledgling company, to secure cutting-edge technologies, raise capital, and procure essential raw materials. During that era, Korea Zinc reached out to foreign enterprises to introduce smelting technologies, successfully secured funding through the International Finance Corporation (IFC) under the World Bank for the construction of its smelting facility, and persuasively convinced hesitant overseas zinc mines to enter into long-term supply agreements with a nascent enterprise in South Korea—a nation many were unfamiliar with. Subsequently, Choi Chang-gurl’s brothers joined the ranks of the company one by one, adding their strengths to the collective effort. The second eldest brother, Honorary Chairman Choi Changyoung, played a pivotal role in acquiring smelting technologies, while the third eldest, Honorary Chairman Choi Changkeun, was responsible for sourcing vital raw materials. Throughout Korea Zinc’s half-century trajectory, the management and workforce of Korea Zinc remained resolutely unified, persevering day after day to achieve the growth that has shaped Korea Zinc into the globally renowned smelting enterprise we recognize today. Thanks to their dedication and toil, Korea Zinc now stands as a preeminent smelter equipped with world-leading technologies and serves as the representative of zinc smelters worldwide during annual negotiations on benchmark treatment charges with mining companies.

Fast forward to 2023: I’ve been contemplating the experiences of Korea Zinc and its dedicated workforce back in 1974. Despite the challenging economic environment, the difficulties of venturing into new businesses, the deep anxiety that accompanies the excitement of ribbon cutting ceremonies, the loneliness that mingles with anticipation–despite all these, they possessed the power within us that we never knew we had, driven by dreams and aspirations that they refused to abandon. Our fathers and our predecessors must have faced similar, if not even greater challenges as we do now, persevering not just for a year or two but for a remarkable 50 years to create the proud Korea Zinc we know today. Perhaps the origin of “the power within us that we never knew we had” lies with them, and it is likely the most precious legacy they have passed down to us.

The Troika Drive initiative, encompassing renewables and green hydrogen, EV Battery materials, and resource recycling, sprang from a dream and has now become Korea Zinc’s overarching vision and core strategy. The time has come to intensify our endeavors to actualize these new ventures and translate our strategy into reality. Embarking on the Troika Drive strategy is not without its share of complexities and obstacles. Among the foremost challenges is the realization that the “present” is where the future begins. Regardless of how splendid our aspirations may be, we must first tend to the house we inhabit today. Despite the allure of tomorrow, we must undertake the maintenance, lubrication, and fine-tuning of the aged facilities that have sustained Korea Zinc for the past half-century. Every day, we must strive to reinvigorate operations that have endured for decades, making them safer, more sustainable, and more efficient. Regardless of how promising the future may seem, it is essential to ensure our survival in the present in order to reach that bright horizon.

In 2024, we anticipate the continuation of our hiring efforts, as around 20 employees will reach retirement age. In addition, we expect ongoing inflation, daily fluctuations in Korea Zinc’s shares, and the ever-changing prices of commodities, influenced by the invisible hand of global markets. Meanwhile, our industrial plants will inevitably age, being vulnerable to oxidation. Our journey is not on calm waters but in the vast, ever-shifting sea, where conditions can turn treacherous at any moment. In this dynamic voyage, a stationary vessel is at risk of sinking, underscoring the need for us to move forward swiftly and consistently, outpacing the waves that threaten to engulf us.

Our imperative is to bolster employee skills and knowledge at a pace exceeding employee turnover, fortify our safety and environmental management systems, proactively invest, build reserves, and make informed decisions to navigate the unpredictable terrain of global markets. We must also diligently maintain and upgrade our aging plants in a timely fashion. Through our daily perseverance, we can chart a course toward the future. It is by surviving each day that we can set our sights on the next 50 years and achieve the objectives of the Troika Drive.

In my New Year’s message for 2022, when the Troika Drive was first introduced, I invoked an age-old saying: “A dream dreamt alone is but a dream; a dream dreamt together is reality.” As previously mentioned, the Troika Drive is not a simple dream to realize; it is a formidable and precious aspiration that can only be achieved through our collective dedication to the future we have chosen. This dream is now shared by over 3,000 Korea Zinc employees, supported by our joint efforts to bring it to fruition. Engagement and unity will serve as the driving force moving the future of Korea Zinc forward. Last December, we successfully hosted our inaugural Investor Day, where we unveiled our vision for the smelting business, the Troika Drive initiative, and plan for sustainability over the next decade. With confidence in our strengths, we believe that our goal of achieving KRW 25.3 trillion in sales by 2033 and establishing the safest and most sustainable smelting operation to produce green metals is well within our grasp.

We embark upon yet another half-century filled with excitement and boundless expectations. Korea Zinc has already initiated its journey to unlock its complete potential. This voyage commenced during the tumultuous summer of 1974, a year etched in history. It is the superhuman determination and unwavering resolve of our predecessors and former colleagues that have propelled us to our current position. I firmly believe that if we continue to forge ahead with unwavering commitment in the same direction, we can achieve success that surpasses even our loftiest expectations. Have faith in the strength we possess, the path we have meticulously charted over the past five decades, and the mission that drives us. Together, let us etch the history of Korea Zinc as a centennial enterprise.

As we welcome the New Year,
I extend my warmest wishes to each and every one of you.
With Deepest Gratitude,

January 2, 2024
Yun B. Choi,
Executive Chairman & CEO of Korea Zinc