SEOUL (Reuters)

Shares of Korea Zinc slumped for a second straight session on Thursday, following the top zinc refiner's decision to issue new stocks.

Decline in Shares

Shares fell by as much as 23.2% in Thursday's morning trade, after hitting their daily lower limit with a drop of 29.9% on Wednesday.

New Stock Issuance

Korea Zinc announced plans to issue new stock worth approximately $1.8 billion, just two days after buying back shares at a higher price, amidst a struggle for control between its co-founding families.

Analyst Concerns

Analysts criticized this move, suggesting it could diminish shareholder value.

Regulatory Oversight

The Financial Supervisory Service is set to brief later on Thursday regarding financial market issues, including the ongoing takeover battle for Korea Zinc. Earlier this month, a probe was launched into recent tender offers from both parties, with a call for fair practices.

Korea Zinc shares traded down 15.1% as of 0038 GMT.