[Featured Stock] Hanjin Kal, Bought by Institutions and Foreigners, Plummets Over 7%

Sharp Drop on News of Hanjin Kal LX Stake Purchase
Reaction to Potential End of Management Dispute
Institutions and Foreigners Net Buyers Over Past Week

[Asia Economy Reporter Junho Hwang] The stock price of Hanjin KAL, the holding company of Hanjin Group, is plummeting as LX Pantos, a logistics affiliate of LX Group, acquired a 3.83% stake in the company.

As of 1:13 PM on the day, Hanjin KAL's stock price was trading at 54,400 KRW, down 7.48% from the previous day. The decline in stock price is analyzed as a result of fading expectations for the management rights dispute.

On the 26th, LX Pantos announced that it had purchased approximately 2.56 million shares of Hanjin KAL from Bando Group for about 160 billion KRW. Bando Group is known to have sold a significant portion of its 17.02% stake (11,361,000 shares) in Hanjin KAL, held through Daehok Development, Hanyoung Development, and Bando Development, on the 26th.

Meanwhile, according to the Korea Exchange (KRX), other corporations sold a total of 10,754,765 shares of Hanjin KAL from the 1st to the 26th of last month, with 99.96% of those shares, or 10,751,000 shares, traded on the 26th alone.

As Bando Group's stake is believed to have been transferred to LX Pantos, there is a forecast that the spark of the management rights dispute, which had been causing fluctuations in Hanjin KAL's stock price, has subsided. Previously, KCGI, which had been in a management rights dispute with Chairman Cho Won-tae of Hanjin Group, sold 9.4 million shares of Hanjin KAL to Hoban Construction in March.

However, according to Mirae Asset Securities, institutions net purchased Hanjin KAL shares worth 373.3 billion KRW during the past week (August 22 to August 29), ranking first in weekly net purchases. Foreign investors also made net purchases worth 74.22383 billion KRW.