(LEAD) Hoban Construction emerges as Hanjin KAL's largest shareholder

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SEOUL, Nov. 4 (Yonhap) -- Hanjin KAL, the holding company of Korean Air Co., said Wednesday Hoban Construction Co. has become its largest shareholder, overtaking Hanjin Group Chairman Cho Won-tae and related parties.

In a regulatory filing, Hanjin KAL said Hoban Construction and related parties had increased their combined stake to 20.69 percent, surpassing the 20.58 percent held by Cho and related parties.

The narrow margin of 0.11 percentage point leaves open the possibility of another change in the company's largest shareholder if Cho and related parties acquire additional shares.

In a move to strengthen his stake, Cho signed an agreement Monday to acquire an additional 325,000 Hanjin KAL shares for 37.05 billion won (US$27.7 million).

The change in Hanjin KAL's largest shareholder, however, does not necessarily signal a shift in management control of Hanjin Group.

Cho retains the backing of major shareholders, including Delta Air Lines and the state-run Korea Development Bank (KDB), which held stakes of 14.90 percent and 10.58 percent, respectively, in Hanjin KAL as of the end of June.

Industry watchers say the future of KDB's stake could emerge as a key variable in the group's ownership structure as Korean Air prepares to complete its integration with Asiana Airlines Inc. in December.

Hoban has recently purchased additional Hanjin KAL shares on the open market and filed a business combination notification with the Fair Trade Commission last month, raising speculation over a potential battle for control of South Korea's largest aviation group.

Hoban first acquired a 13.97 percent stake in Hanjin KAL from activist private equity firm KCGI in 2022 for approximately 564 billion won and has since expanded its holdings through affiliates, including Hoban Hotels & Resorts.

KCGI had previously challenged the Cho family's control of Hanjin Group.

ejkim@yna.co.kr
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