Korean Air counts on allied shareholders to contain Hoban's influence

By Lee Min-hyung

• Published Sep 17, 2026 3:41 PM KST

Carrier sees KDB's continued hold of Hanjin KAL stake as best-case scenario

Korean Air is counting on its existing shareholder base to contain Hoban Group’s growing influence, as the builder continues to increase its stake in Hanjin KAL to challenge Hanjin Group Chairman Cho Won-tae's control over the aviation conglomerate.

Hoban has raised its Hanjin KAL stake to 20.15 percent, just 0.42 percentage point below the 20.57 percent held by Cho and his related parties.

The narrowing gap has fueled speculation that Hoban could eventually seek a greater role in the management of Korean Air, the flagship carrier controlled by Hanjin KAL.

An official from the airline said the most favorable scenario for the company would be for Korea Development Bank (KDB) not to sell its stake. KDB has long held a 10.58 percent stake in Hanjin KAL.

If the state-run bank continues to hold its stake, Cho’s side would retain a significantly larger bloc of friendly shares than Hoban, reducing the immediate threat to the current management’s control. Delta Air Lines, which holds a 14.9 percent stake in Hanjin KAL, is widely considered a long-term ally of Korean Air.

KDB, which received its Hanjin KAL shares after providing financial support for Korean Air’s acquisition of Asiana Airlines, has no immediate obligation to dispose of the stake. The lender said it will consider an exit based on market conditions, leaving the timing and method of any potential sale open.

For Korean Air, that flexibility removes an immediate deadline for a showdown with Hoban. It also makes the prospect of Hoban acquiring the entire KDB stake less certain, given that the shares are ultimately held by a state-run institution, rather than a private investor seeking a quick exit.

"We are closely monitoring whether Hoban increases its stake further," an airline official said.

Korean Air is also placing weight on its strategic relationships with foreign carriers.

“We believe that foreign airlines, including Delta Air Lines and Japan Airlines (JAL), are also our allies,” the official said.

Delta has maintained a longstanding strategic partnership with Korean Air. JAL recently acquired an undisclosed stake in Hanjin KAL to expand its strategic partnership with Korean Air, including deeper cooperation in passenger and cargo operations.

Korean Air displays hopes that its friendly shareholder base will ultimately prevent Hoban from posing a serious threat to management control.

“We expect that our friendly shareholders will ultimately give us a significant advantage, meaning that Hoban’s stake alone will not pose a major, imminent threat to our management control,” the official said.

The key variable, therefore, is whether KDB and other major shareholders remain on the same side of the ownership structure.

Hoban has so far maintained that its investment in Hanjin KAL is for investment purposes only and has not publicly declared plans to seek management participation. Its continued accumulation of shares, however, has kept speculation over its long-term intentions alive.