Not completely correct - the closest is actually mgmeyers zotero integration plugin as it follows exactly the same procedure: it uses zotero’s native insertion dialogue which gives you more control over the inserted citation (you can add pages and amendments, for example).
The above-mentioned citations plugin as well as the bibnotes plugin (which, however, is still not registered as a community plugin and has to be installed via BRAT) can both do simple citekey insertions but are rather meant for creating literature notes.
In addition, there is a new zotero plugin for obsidian which more deeply integrates both apps (obsidian and zotero) and seems to be a community project (but is still in early beta).
A quick search for “zotero”, however, would also have answered your question…