Hoban Construction Continues to Expand Hanjin KAL Stake

Hoban Construction has purchased additional shares in Hanjin KAL, the holding company of Hanjin Group, narrowing the gap with largest shareholder Cho Won-tae, chairman of Hanjin Group, to the smallest margin ever.

According to Hanjin KAL's 2025 business report disclosed on the 18th, Hoban Construction held an 18.78% stake in Hanjin KAL as of the end of last year. This represents a 0.88 percentage point increase from 17.90% at the end of 2024. During the same period, the combined stake of Chairman Cho and his specially related parties stood at 20.56%, narrowing the gap between the two sides to 1.78 percentage points. The gap, which was 2.23 percentage points a year ago, has decreased by 0.45 percentage points.

Hoban Construction has been steadily increasing its stake since becoming the second-largest shareholder in 2022 by acquiring a 17.43% stake in Hanjin KAL from private equity fund KCGI, and purchasing an additional 5.85% stake from Pan Ocean in 2023. While Hoban has stated it is "purely for investment purposes," some in the business community are watching for potential future involvement in management.

Management Rights Threat Limited When Friendly Stakes Included

While the gap appears to have narrowed based on simple stake percentages, the situation changes when friendly stakes are included. When stakes held by Delta Air Lines (14.90%) and Korea Development Bank (10.58%), classified as friendly to Chairman Cho, are added, Chairman Cho's side secures a total of 46.04% of shares. This maintains a gap of 27.26 percentage points over Hoban Construction.

Industry analysts largely believe that given this friendly stake structure, it would be difficult for Hoban Construction to pose an immediate threat to management rights. However, given Hoban Construction's history of attempting to acquire Kumho Industrial, the parent company of Asiana Airlines, in 2015, some observers note that the possibility of a long-term strategic investment remains open.

National Pension's Entry Emerges as Variable in Shareholder Meeting Structure

A noteworthy change in this business report is the National Pension Service's new listing as a major shareholder of Hanjin KAL. The National Pension secured a 5.44% stake in Hanjin KAL as of the end of last year, earning a spot on the list of major shareholders.

The National Pension's entry could serve as an important variable in future shareholder meetings. Particularly with the narrowed gap between Hoban Construction and Chairman Cho's side, observers note that the National Pension's stance could influence the management rights structure. The National Pension has historically exercised voting rights actively at shareholder meetings to improve corporate governance and enhance shareholder value.

On the 19th, Hanjin KAL's stock price surged early in trading on news of Hoban Group's additional share purchases, but soon gave back its gains. The market appears to reflect the assessment that the actual threat to management rights, considering friendly stakes, is not significant.