Hoban Group Sells Part of LS Stake, Cites "Investment Purpose"

Hoban Group, which previously sparked speculation of a “management intervention attempt” by purchasing shares in LS, a rival in the cable industry, is reported to have sold off part of its stake and realized a profit.

According to industry sources on November 21, Hoban Group recently disposed of a portion of its shares in LS Corporation that it had previously held.

Earlier this year, Hoban Group initially acquired less than a 3% stake in LS, and later increased its holdings to over 3%. While the exact proportion of Hoban Group’s remaining shares after the sale is unclear, it is reported to have fallen below 3%. Holding more than a 3% stake grants rights such as requesting an extraordinary general shareholders’ meeting, demanding the dismissal of directors, and inspecting accounting books.

When Hoban Group began acquiring LS shares, some speculated that the move was intended to gain an advantageous position in the ongoing patent litigation between Taihan Cable, a Hoban Group affiliate, and LS Cable & System, a subsidiary of LS Group, by purchasing shares in LS, the parent company of LS Cable & System. LS Cable & System and Taihan Cable are considered the two leading companies in Korea’s cable industry.

In 2019, LS Cable & System filed a lawsuit against Taihan Cable, claiming that Taihan Cable’s products infringed on its patent rights. Separately, there were allegations that LS Cable & System’s submarine cable plant design know-how had been leaked to Taihan Cable through Gaun Architects & Engineers, prompting a police investigation.

Upon news of the LS share acquisition, Hoban Group stated, “We understand this as an investment based on future growth potential,” distancing itself from speculation about management intervention. Regarding the partial sale of LS shares, Hoban Group commented, “We made the transactions according to internal standards, having invested based on a positive outlook for the relevant industry,” clarifying that the purpose was to realize investment gains.

Before the news of Hoban Group’s acquisition of LS shares became public, LS stock was trading in the low 100,000 won range at closing prices. Subsequently, the price doubled to the low 200,000 won range.