SEOUL (Reuters) -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 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 cancelled its $1.8 billion share issuance plan after backlash, leading to Chairman Choi Yun-beom's resignation.

Korea Zinc Co., the world's largest refined zinc smelter, said Wednesday it will hold a shareholders meeting over its management control, hours after scrapping its share sale plan taken issue with by the financial regulator.