Korea Zinc said on Wednesday it has decided to withdraw its plan to issue new shares worth $1.8 billion after the proposal sparked an investigation by the financial watchdog and a sell-off in the company's stock.

Korea Zinc Co.’s board will meet on Wednesday to decide whether or not to proceed with a $1.8 billion share sale plan which prompted a selloff in the stock and triggered an investigation by the country’s financial watchdog.

Korea Zinc withdrew its plan for a large-scale capital increase through the issuance of new shares on Wednesday. This came a week after the Financial Supervisory Service (FSS) suspended the plan, citing concerns that it could cause significant misunderstanding among investors.

The chairman of the board of Korea Zinc vowed on Wednesday to make way for an outsider after the firm dropped a plan to issue new shares worth $1.8 billion that had sparked an investigation by the financial watchdog and a share sell-off.

Korea Zinc Co., the world's largest refined zinc smelter, on Tuesday hinted at the possible withdrawal of its disputed share sale plan currently under investigation by the financial regulator. The company will hold an emergency board of directors meeting on Wednesday to decide whether to withdraw