Hoban becomes Hanjin KAL's largest shareholder, overtaking Cho Won-tae
Summary
Hoban Group became Hanjin KAL’s largest shareholder as of Wednesday, holding a 20.69 percent stake, according to a regulatory filing. Hanjin Group Chairman Cho Won-tae and related parties held 20.58 percent, making them the second-largest shareholder group. The change does not automatically shift management control, as Cho has backing from Delta Air Lines and Korea Development Bank. The ownership shift comes as Hanjin Group prepares to integrate Korean Air and Asiana Airlines on Dec. 17.
Key Facts
- Hoban Group and related parties held 13,814,053 common shares in Hanjin KAL.
- Cho and his related parties plan to purchase 325,000 additional shares by Jan. 1 next year, which could restore their position as the largest shareholder.
- Delta Air Lines holds a 14.9 percent stake in Hanjin KAL, while state-run Korea Development Bank owns 10.58 percent.
- The three shareholder groups—Cho’s, Delta’s and KDB’s—account for approximately 46 percent of Hanjin KAL.
- Hanjin Group plans to launch a converged low-cost carrier next year.
Hanjin Group chairman seeks to regain top shareholder position in January
Korean Air planes can be seen at Incheon International Airport, Aug. 18. Korea Times photo by Shim Hyun-chul
Hoban Group has become the largest shareholder of Hanjin KAL, overtaking Hanjin Group Chairman Cho Won-tae and his related parties, according to a regulatory filing Wednesday, marking a significant shift in the ownership structure of the holding company behind Korean Air.
Hanjin KAL disclosed that Hoban Group and related parties held a combined 13,814,053 common shares, totaling a 20.69 percent stake in Hanjin KAL, confirming the change in its largest shareholder position as of Wednesday.
The disclosure follows growing speculation over whether Hoban's share had surpassed Cho's after the construction group recently purchased additional Hanjin KAL shares and reported it with the Fair Trade Commission.
“However, as disclosed by Hanjin KAL’s recent report, Cho and his related parties could regain their position as Hanjin KAL’s largest shareholder once they complete the planned purchase of 325,000 shares by Jan. 1 next year,” an official from Korean Air said.
As of Wednesday, Cho and his related parties secured a 20.58 percent stake in Hanjin KAL, which shifted their position to the firm’s second-largest shareholder.
Kim Sang-yeol, founder and former chairman of Hoban Group, delivers a commemorative speech during a ceremony marking the group's 30th anniversary at its headquarters in Seoul, June 28, 2019. Yonhap
The change, however, does not automatically mean a shift in management control, as Cho continues to have backing from major shareholders, including Delta Air Lines and state-run Korea Development Bank (KDB).
Delta holds a 14.9 percent stake in Hanjin KAL, while KDB owns 10.58 percent. Combined with Cho and his related parties' holdings, the three shareholders account for approximately 46 percent of the company, providing a substantial voting base for the incumbent management.
Hoban has maintained that its Hanjin KAL shares are held for simple investment purposes and has not publicly announced plans to participate in management. However, its emergence as the largest shareholder is likely to intensify scrutiny of its longer-term intentions, particularly as the holding company prepares for major changes across the airline group.
The ownership shift comes at a sensitive time for Hanjin Group, which is preparing to launch integrated operations between Korean Air and Asiana Airlines on Dec. 17. It will also launch a converged low-cost carrier next year.
Hanjin KAL plays a central role in the airline group's ownership and governance structure. Any prolonged shareholder tensions could complicate the group's efforts to maintain management stability, as it undertakes one of the most significant restructuring processes in the domestic aviation industry.
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