South Korea: Korea Zinc’s record Q2 earnings underscore resilient zinc business

• Q2 operating profit jumps 127% y-o-y
• Zinc sales increase 23% despite diversified earnings

Korea Zinc posted a record second-quarter operating profit, supported by strong demand across its metals portfolio, with the zinc business continuing to provide a solid earnings base alongside higher contributions from precious and strategic metals.

The company reported consolidated revenue of KRW 6.37 trillion ($4.46 billion) in the second quarter, up 66.6% year-on-year, while operating profit surged 126.8% to KRW 587 billion. The performance marked the company’s highest-ever quarterly operating profit and extended its streak of profitable quarters to 106 consecutive reporting periods.

For the first half of the year, revenue increased 62.5% y-o-y to KRW 12.45 trillion, while operating profit climbed 151.5% to KRW 1.33 trillion. Operating margin improved to 10.7% from 6.9% in the corresponding period last year.

The zinc segment remained a key contributor to the company’s earnings, with zinc sales increasing 22.6% y-o-y to KRW 1.56 trillion. The improvement reflected healthy demand for refined zinc despite a mixed global macroeconomic environment. Strong sales of silver and gold further lifted profitability, while higher copper sales and increased revenue from strategic metals, including bismuth and indium, diversified the company’s earnings base.

The stronger financial performance highlights the resilience of integrated multi-metal producers, where earnings from precious and specialty metals help offset cyclical fluctuations in base metals. For the zinc market, the results indicate that downstream consumption remained sufficiently robust to support refined metal sales during the quarter, despite continued uncertainty across global manufacturing and construction sectors.

The board approved a second-quarter dividend of KRW 5,000 per share, taking the first-half dividend to KRW 10,000 per share, equivalent to shareholder returns of approximately KRW 204 billion. The company also reaffirmed its value enhancement plan, targeting a total shareholder return ratio of more than 40% during 2024-2026.

A company official attributed the record performance to technological innovation, diversified metal recovery capabilities, proactive investments and a broad product portfolio. The company said it will continue improving productivity and profitability while strengthening long-term corporate value.