Korea Zinc under Pressure: Stock Temporarily Drops by 23%

The shares of South Korean metal producer Korea Zinc found themselves in free fall after reports circulated that the South Korean market regulator might demand a revision of the controversial $1.8 billion stock sale. The intended stock sale had already caused significant losses the previous day. During Thursday, Korea Zinc's shares were able to somewhat limit their losses, trading at a midday decline of about 2.3%. However, on the previous trading day, the share price had plummeted by a steep 30%. The planned, deeply discounted stock issuance was perceived by many market participants as an attempt by the chairman to consolidate control over the company, which led to uncertainty among investors.