Soaring Korea Zinc share price: Choi Yun-beom's prescient vision on rare metals

[Korea Financial Times, Gwak Horyung] As US-China trade war intensifies, prescient foresight of Korea Zinc Chairman Choi Yun-beom, who bet early on rare metals, is drawing renewed attention.

Korea Zinc's share price stood at KRW 1.386 million as of the 15th, surging 44 percent in just three trading sessions from KRW 965,000 on the 10th.

Behind Korea Zinc's share price jump lies US-China trade tensions. On the 9th, China's Ministry of Commerce announced it would strengthen rare earth export controls beyond previous levels. Rare earths are strategic resources used in advanced technology and military industries. Expectations exist that Korea Zinc will reap benefits as the US responds through global supply chain restructuring.
Additionally, rising prices of precious metals such as gold and silver, and rare metals handled by Korea Zinc amid intensifying US-China disputes are cited as positive factors for company performance.


Korea Zinc operates a business structure recovering precious metals and rare metals as by-products from its core zinc and lead smelting processes.

Among non-ferrous metal sales in the first half of this year, zinc and lead accounted for 39.8 percent, down nearly 10 percentage points from 49.3 percent at the end of last year. While zinc and lead struggled with price weakness, proportions of gold (10.4 percent) and silver (26.4 percent) expanded.

For rare metals, sales increased 3.5-fold from KRW 42 billion in the second quarter of last year to KRW 146 billion in the second quarter of this year. Major minerals include antimony (70 percent of sales) and indium (10 percent), used in military industries.
Interpretations suggest that Chairman Choi and management's strategic expansion of rare metals business proved prescient. Korea Zinc stated: "We continuously improve rare metal recovery rates, maintaining industry-leading profitability." Chairman Choi demonstrated commitment by accompanying the Korea-US summit in August as part of the economic delegation, directly discussing supply chain cooperation with US government officials. Indeed, Korea Zinc signed a memorandum of understanding (MOU) with US-based Lockheed Martin for germanium supply.

However, investors should note that Korea Zinc's share price has already risen substantially. The fact that the US-bound rare metals business remains in early stages must also be considered. Germanium exports under the MOU with Lockheed Martin are scheduled to begin around 2028. While antimony exports to the US started last June, volumes remain extremely low.

On the 16th, the share price closed at KRW 1.289 million, down 7 percent from the previous day due to profit-taking sell-offs.

Gwak Horyung (horr@fntimes.com)