Hoban, Harim suspected of joining forces against LS

Harim Group Chairman Kim Hong-kuk introduces the company's new instant food lineup in Seoul, May 15. Newsis

Harim, Korea’s largest poultry processing company, appears to be supporting Hoban in the construction-to-media conglomerate’s apparent efforts to participate in the management of LS, which specializes in cables, power equipment, metal and machinery.

According to a regulatory filing submitted earlier this week, Pan Ocean, the shipping subsidiary of Harim, acquired a 0.24 percent stake in LS Corp. for 12.3 billion won ($8.9 million) on May 16. Pan Ocean said its investment in LS Group's holding company is not intended to interfere with management.

However, the investment has been widely interpreted as part of Harim’s efforts to assist Hoban, given their long-standing cooperation in various fields.

Hoban Group founder Kim Sang-yeol

In 2023, when Harim sought to acquire HMM, Korea’s largest container shipping company, Hoban attempted to finance the deal through a bond issuance. That same year, Hoban regained a 5.85 percent stake in Hanjin KAL, the parent company of Korean Air, from Pan Ocean, one year after selling the share to secure liquidity amid a real estate market slowdown.

Industry officials expect Hoban, which holds at least a 3 percent stake in LS Corp., to seek to exert influence over LS Cable & System, though the construction giant has denied speculation, saying its investment is meant to support the power industry.

LS C&S, Korea’s leading cable manufacturer, is in a fierce rivalry with Hoban-owned Taihan Cable & Solution. The two cable makers have been embroiled in several legal battles regarding Taihan’s alleged theft of technologies from LS.

Before Pan Ocean’s investment, LS formed alliances with Hanjin and LIG.

Hanjin is also in conflict with Hoban over control of Korean Air’s parent company. The chairmen of LS and LIG are relatives, both members of the LG founding family.

However, LS has also denied speculation that its partnerships with Hanjin and LIG aim to counter Hoban’s moves.