Hoeban Group increased its stake in Hanjin KAL, the holding company of Hanjin Group, to 20.15% through additional share purchases disclosed on the 10th, narrowing the ownership gap with Chairman Cho Won-tae's faction to 0.42 percentage points. The acquisition of 1.69% (1,132,900 shares) by Hoeban Hotel & Resort and Hoeban Industrial raised Hoeban Group's total holdings from 18.46%, while Chairman Cho's side maintains 20.57%. Analysts highlight that Korea Development Bank's 10.58% stake has become the critical factor in determining future control of Hanjin KAL, as the state lender approaches the completion of its original investment objective—the merger of Korean Air and Asiana Airlines—with the merger date set for December 16.
Hoeban Group Reaches 20.15% Stake with 1 Trillion Won Valuation Gain
According to Bae Se-ho, researcher at iM Securities, Hoeban Group's cumulative net purchase amount for Hanjin KAL shares totals 878.2 billion won, with stock valuation profits reaching 1 trillion won based on the closing price on the 10th. Despite Hoeban designating its shareholding purpose as "simple investment" consistent with previous disclosures, Bae assessed that "considering the investment scale and the ownership gap with the largest shareholder, the possibility of a management control objective is higher."
As of July, Hanjin KAL's shareholder composition comprises Chairman Cho Won-tae and specially related parties at 20.57%, Hoeban Group at 20.15%, Delta Air Lines at 14.9%, Korea Development Bank at 10.58%, National Pension Service at 5.44% (as of end-2025), and LX Pantos at 3.83%. Bae classified Delta Air Lines, Korea Development Bank, and LX Pantos as friendly stakes to Chairman Cho, bringing his aligned ownership to 49.88%, which limits the immediate impact of Hoeban's stake acquisition on management control.
Korea Development Bank's 10.58% Stake Emerges as Control Pivot
Bae identified the direction of Korea Development Bank's 10.58% holding as the most critical issue for Hanjin KAL's future control, noting that the bank can recover its investment following the completion of the Korean Air-Asiana Airlines merger. Korea Development Bank's November 2020 investment in Hanjin KAL—comprising a 500 billion won capital increase and 300 billion won in exchangeable bonds—had "integration of the two major airlines" as its primary objective, Bae stated.
With the merger date determined as December 16, Korea Development Bank has fulfilled its investment purpose and is expected to prepare for investment recovery in earnest in 2027, anticipating substantial returns. Bae analyzed that "if Hoeban Group can acquire Korea Development Bank's stake, a management control dispute could escalate in full."
Analyst Projects Stock Price Tied to Hoeban's Holding Decision
Bae assessed that Hanjin KAL's current stock price already reflects management control dispute expectations. "Therefore, Hoeban Group's sale of Hanjin KAL shares could trigger a sharp stock price decline, while conversely, as long as Hoeban does not sell, Hanjin KAL's elevated stock price is expected to persist due to management control dispute expectations and limited free-float volume (estimated at 24.5% for general shareholders)," Bae added.
FAQ
What stake does Hoeban Group now hold in Hanjin KAL?
Hoeban Group holds 20.15% of Hanjin KAL following the acquisition of an additional 1.69% (1,132,900 shares) disclosed on the 10th, increasing from 18.46%. This narrows the gap with Chairman Cho Won-tae's faction, which maintains 20.57%, to 0.42 percentage points.
Why is Korea Development Bank's stake considered critical for Hanjin KAL's control?
Korea Development Bank holds 10.58% of Hanjin KAL and is expected to prepare for investment recovery in 2027 after completing its original objective—the Korean Air-Asiana Airlines merger set for December 16. Analyst Bae Se-ho of iM Securities stated that if Hoeban Group acquires the bank's stake, a management control dispute could escalate in full.
How much profit has Hoeban Group made on its Hanjin KAL investment?
Hoeban Group's stock valuation profit on Hanjin KAL shares reached 1 trillion won based on the closing price on the 10th, with a cumulative net purchase amount of 878.2 billion won, according to iM Securities researcher Bae Se-ho.
