Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
Asiana Airlines stock hit daily limit over possible takeover by Korean Air
By Anna J. Park
By Anna J. Park
With the Korea Development Bank's rather controversial guidance to move forward with its plan for Korean Air's takeover of Asiana Airlines, stocks of Korean Air, Asiana Airlines and Hanjin KAL all remained bullish throughout the day, ending at Monday's closing with a rise of 12.53 percent, 29.84 percent and 5.66 percent, respectively.
Korean Air, the nation's largest carrier, started strong as the stock once reached 30,150 won ($27.19) at 13:25 p.m. during intraday trading; yet it fell during the rest of the trading session, finishing at 26,950.
Hanjin KAL, the holdings company of the nation's biggest carrier, started weak over infighting among major shareholders regarding ongoing strife related to control of Korean Air, falling to 75,900 won at 9:45 a.m. in the day.
But the stock soared high, with strong buys from both retail and foreign investors, stoking the price up to 95,500 won ― about a 23 percent jump ― at 1:25 p.m. Yet as institutional investors also sold stocks, it ended with a 5.66 percent jump, finishing at 82,200 won.
Asiana Airlines, which has long been on a downward path which was not helped when the selloff plan for the carrier was canceled, saw the biggest jump Monday, as it hit the daily ceiling of a 29.84 percent hike from the previous session, finishing at 5,570 won.
Until the end of last week, the airline's stock stayed almost flat, not much affected by the news of possible COVID-19 vaccine developments, while other airlines all rose over 10 percent. Investors weren't sure of the carrier's future but with the possibility of a takeover by its long-time competitor, Korean Air, both retail and foreign investors turned to net buying on Monday.
Meanwhile, Kumho Engineering and Construction, which holds 33.47 percent of Asiana Airlines' shares, also saw its stock price hit a daily limit of 29.58 percent, as it finished at 10,250 won on Monday.
“Outwardly, Korean Air's possible takeover of Asiana Airlines could be regarded as a 'winner's curse,' but what is a more important change for the carrier is the fact that it could now dominate the local flight market,” said Choi Go-un, analyst from Korea Investment & Securities.