Korea Zinc Pulls $1.8 Billion Share Sale Plan After Probe

Korea Zinc Co. has scrapped a planned $1.8 billion share sale, nearly two weeks after its announcement prompted a selloff in the stock and triggered an investigation by the country’s financial watchdog.

Korea Zinc said in a regulatory filing on Wednesday that it considered opinions of market participants and shareholders before making the decision. The announcement deals a blow to Chairman Choi Yun-beom’s efforts to shore up support among shareholders and employees, who stood to be allocated a fifth of the new stock. It would also delay his proposed move to pay down debt.

Shortly after the share issue plan ...