[Stock in Focus] Hanjin KAL Soars Over 29% on Hoban Construction's Increased Stake

On May 13, shares of Hanjin KAL, the holding company of Hanjin Group, surged sharply. This came after news broke that Hoban Construction had increased its stake in Hanjin KAL to over 18%.

As of 9:15 a.m. on the same day, Hanjin KAL shares were trading at 115,900 won, up 26,700 won (29.93%) from the previous trading day, hitting the upper price limit. Hanjin KAL preferred shares also soared by 29.98%, reaching the upper limit.

The previous day, Hoban Construction submitted a "Report on Large-Scale Holdings of Stocks, etc.," stating that its stake in Hanjin KAL had risen from 17.44% to 18.46%.

Hoban Hotel & Resort, an affiliate of Hoban Construction, purchased 641,974 shares (0.96%) of Hanjin KAL on the market over roughly one year from March of last year to April of this year. Hoban also acquired an additional 34,000 shares (0.05%) in March of last year. As a result, Hoban Hotel & Resort's stake in Hanjin KAL increased to 6.81%, and Hoban's stake rose to 0.15%.

Consequently, the combined stake of Hoban Construction and its special affiliates reached 18.46%. Hoban Construction already holds an 11.50% stake in Hanjin KAL.

While Hoban Construction maintains that it acquired the shares purely for investment purposes, the industry expects that Hoban Construction may have an interest in Hanjin KAL's management rights.

Hoban Construction became the second-largest shareholder in 2022 after acquiring shares from KCGI, a private equity fund that had previously engaged in a management dispute with Hanjin KAL.

Looking solely at the stakes held by Hanjin Group Chairman Cho Won-tae and his special affiliates, the gap with the stake held by Hoban Construction is only 1.5 percentage points.

Given that Hoban Construction previously explored acquiring Kumho Industrial, the parent company of Asiana Airlines, in 2015, there is also speculation that it may enter the airline industry in the future.