Hoban Construction emerges as Hanjin KAL's largest shareholder

SEOUL, Nov. 4 (Yonhap) -- The holding company of Korean Air Co., Hanjin KAL, revealed on Wednesday that Hoban Construction Co. has emerged as its largest shareholder, surpassing the previously leading position of Hanjin Group Chairman Cho Won-tae and his affiliated parties. According to a regulatory filing, the combined stake of Hoban Construction and its related entities now stands at 20.69 percent, narrowly edging out the 20.58 percent held by Cho and his associates.

The slim 0.11 percentage point difference suggests that another change in the title of Hanjin KAL's leading shareholder could occur if Cho and his parties acquire additional shares.

Cho bolstered his position by signing an agreement on Monday to purchase an extra 325,000 Hanjin KAL shares, valued at 37.05 billion won (US$27.7 million). Meanwhile, Hoban Construction has been actively increasing its holdings through open market purchases and had filed a business combination notification with the Fair Trade Commission last month.

This has sparked speculation regarding a potential power struggle for control of South Korea's largest aviation group. Hoban initially acquired a 13.97 percent stake in Hanjin KAL from activist private equity firm KCGI in 2022, and has since expanded its ownership through affiliated entities, including Hoban Hotels & Resorts. Prior to this, KCGI had contested the dominance of the Cho family in Hanjin Group.