Korean construction conglomerate Hoban Group has significantly increased its ownership in Hanjin KAL, the holding company of Korean Air and parent to Hanjin Group. Its stake now exceeds 20 percent, narrowing the gap with the controlling shareholder bloc, led by Hanjin Group Chairman Walter Cho, to less than one percentage point.
According to a regulatory filing on Friday, Hoban’s stake in Hanjin KAL advanced to 20.15 percent from its previous 18.46 percent. This increase came after its affiliates acquired an additional 1.13 million shares on the open market.
These recent purchases boosted Hoban Hotel & Resort’s stake from 6.81 percent to 8.34 percent, while Hoban Industrial’s holding grew to 0.17 percent. Hoban Construction maintains its 11.5 percent share, and Hoban Co. holds 0.15 percent.
Hoban’s aggregate ownership now trails the 20.57 percent stake held by Chairman Cho and his related parties by a mere 0.42 percentage points—the narrowest margin on record. Chairman Cho personally holds a 5.78 percent interest in Hanjin KAL.
Despite market speculation that its steady share accumulation could pave the way for a hostile takeover attempt, Hoban Group reiterated in its filing that the latest share acquisitions were purely “an investment.” The company continues to affirm its long-standing position of not seeking management control of Hanjin KAL.
Hoban Group first became Hanjin KAL’s second-largest shareholder in 2022 after acquiring a significant stake from the private equity fund KCGI. Its holding was further expanded in 2023 through the purchase of a 5.85 percent interest from Pan Ocean.
This isn’t Hoban’s first venture into acquiring stakes in airline parent companies. In 2015, the group made an unsuccessful bid for Kumho Industrial, which was then the parent company of Asiana Airlines, after building a 6.16 percent stake the year prior.
Even with Hoban’s rising stake, Chairman Cho appears to maintain a comfortable defensive buffer through a network of allied shareholders.
Key allies include US-based Delta Air Lines, Korean Air’s joint-venture partner, which holds 14.9 percent of Hanjin KAL. The state-run Korea Development Bank (KDB) also holds a substantial 10.56 percent, acquired after backing Korean Air’s acquisition of Asiana Airlines. Collectively, with these strategic partners, Chairman Cho’s camp commands approximately 46 percent of Hanjin KAL’s shares.
Industry officials also highlight the National Pension Service (NPS), which owns 5.46 percent, as a crucial potential swing shareholder should any future corporate governance disputes emerge.
