Hoban Construction raises Hanjin KAL stake above 20%, closing gap with Chairman Cho to 0.42 percentage points

Hoban Construction has raised its stake in Hanjin KAL, the holding company of Hanjin Group, to more than 20 percent, narrowing the gap with the largest shareholder, Hanjin Group Chairman Cho Won-tae, to just 0.42 percentage points and drawing fresh market attention to the conglomerate's ownership structure.

Hoban Construction disclosed Friday that it holds 13,454,674 shares of Hanjin KAL, bringing its stake to 20.15 percent — up 1.69 percentage points from 18.46 percent reported in its previous filing last May.

The expansion was driven more by purchases through affiliates than by Hoban Construction itself. The company's direct holding remained at 11.50 percent, while Hoban Hotels & Resorts increased its position to 8.34 percent. Hoban Industrial was newly added as a specially related party, holding 112,145 shares, or 0.17 percent. The number of specially related parties on the Hoban side grew from three to four.

As a result, the gap between the Hoban camp and Chairman Cho narrowed to 0.42 percentage points. Cho's stake in Hanjin KAL stood at 20.57 percent as of end of March.

Hoban Construction has stated that its purpose in holding Hanjin KAL shares is "simple investment." However, observers inside and outside the aviation industry note that Hoban has been consistently building its position, and some see the move as a potential variable in future control of the company.

Hanjin KAL is the core holding company through which Hanjin Group controls Korean Air. With the merger of Korean Air and Asiana Airlines now under way, the ownership structure and shareholder composition of Hanjin KAL after the combined carrier launches are closely tied to the group's management stability.

For now, however, the gap between the Hoban camp and Chairman Cho remains significant once friendly shareholders are factored in. Delta Air Lines, widely regarded as a friendly shareholder supporting Cho's management, holds a 14.9 percent stake in Hanjin KAL. Korea Development Bank holds 10.56 percent. The National Pension Service holds 5.46 percent and could emerge as a swing factor at future shareholder meetings.

Hoban Construction became the second-largest shareholder in 2022 after buying Hanjin KAL shares from private equity fund KCGI. It has since steadily increased its stake, including the additional purchase of a 5.85 percent holding previously held by Pan Ocean in 2023.

Hoban Construction's moves draw added scrutiny in the aviation industry because of its past interest in the sector. The company considered acquiring Kumho Industrial, which then held Asiana Airlines, in 2015. Although that deal never materialized, it is widely cited as evidence of the company's longstanding interest in aviation.

Industry watchers are divided: some see limited likelihood that Hoban Construction will immediately pursue a management control dispute, while others argue that with its stake so close to the largest shareholder's, the possibility of future shareholder activism cannot be ruled out. Hanjin KAL's share price, the agenda at upcoming shareholder meetings, and governance changes following the Korean Air–Asiana Airlines merger are all cited as key variables to watch.