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 aims to limit the expanding sway of the Hoban Group by relying on its present shareholders, as the builder continues to increase its ownership in Hanjin KAL. This move comes as Hanjin Group Chairman Cho Won-tae strives to maintain his grip on the aviation giant. Currently, Hoban's stake in Hanjin KAL stands at 20.15 percent, just 0.42 percentage points shy of the 20.57 percent controlled by Cho and his affiliated parties.
This diminishing gap has sparked speculation that Hoban may eventually seek a more significant role in managing Korean Air, the flagship carrier owned by Hanjin KAL.
According to a Korean Air official, the airline's most favorable scenario would involve Korea Development Bank (KDB) retaining its 10.58 percent stake in Hanjin KAL. KDB has a long-standing investment in the company. If KDB maintains its stake, Cho's faction would hold a substantially larger block of supportive shares compared to Hoban, mitigating the immediate risk to the existing management's control.
Delta Air Lines, which holds a 14.9 percent stake in Hanjin KAL, is widely viewed as a long-term ally of Korean Air. KDB, which received a portion of its stake following a government bailout of Hanjin in 2014, is also seen as a crucial supporter of the airline.
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.
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