Korean Air counts on allied shareholders to contain Hoban's influence
Korean Air is counting on its existing shareholder base to contain Hoban Group’s growing influence, as the builder continues to increase its stake in Hanjin KAL to challenge Hanjin Group Chairman Cho Won-tae's control over the aviation conglomerate. Hoban has raised its Hanjin KAL stake to 20.15 percent, just 0.42 percentage point below the 20.57 percent held by Cho and his related parties. The…
Korean Air is relying on its existing shareholders to limit the growing influence of the Hoban Group, as the builder continues to increase its stake in Hanjin KAL and challenges the control of Hanjin Group Chairman Cho Won-tae over the aviation conglomerate. Currently, Hoban holds 20.15 percent of Hanjin KAL, just 0.42 percentage points shy of Cho and his affiliated parties' 20.57 percent stake.
This narrowing gap has sparked speculation that Hoban may eventually seek a more significant role in managing Korean Air, the flagship carrier owned by Hanjin KAL.
The airline's management expressed a favorable scenario where Korea Development Bank (KDB) does not sell its 10.58 percent stake in Hanjin KAL. KDB has maintained a long-term position in the company. If KDB remains invested, Cho's side would hold a substantially larger block of supportive shares compared to Hoban. This would lessen the immediate threat to the current management's control over Korean Air.
Delta Air Lines, which owns a 14.9 percent stake in Hanjin KAL, is considered a long-term ally of Korean Air. KDB, which received funding from the government, is seen as a crucial player in determining the company's future direction.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
