Hoban overtakes Walter Cho as Hanjin KAL's top shareholder

Hoban Construction has overtaken Hanjin Group Chairman Walter Cho, who also serves as CEO of Korean Air, as the largest shareholder of Hanjin KAL, the group's holding company, setting the stage for a renewed stake battle as Cho prepares to reclaim the top spot next month.

Hanjin KAL said Wednesday that Hoban Construction and its affiliates hold a combined 20.69 percent stake, narrowly exceeding the 20.58 percent held by Cho and related parties.

But Hoban's lead may be short-lived. Cho plans to acquire an additional 325,000 shares, or 0.49 percent, in early December, potentially raising his stake to 21.07 percent and restoring his position as the largest shareholder.

Hoban has steadily increased its holdings since acquiring shares from activist fund KCGI in 2022. In July, its stake reached 20.15 percent, just 0.42 percentage point behind Cho's shareholder group.

Although Hoban has described its purchases as passive investments, speculation is growing that it could seek board representation at Hanjin KAL's annual shareholders meeting next March.

The shift in shareholder rankings does not immediately threaten Cho's management control.

Delta Air Lines and state-run Korea Development Bank, both considered friendly to Cho, held stakes of 14.90 percent and 10.58 percent, respectively, as of June.

Hanjin Group maintains that these allied holdings provide sufficient protection against a management challenge.

Still, the future of KDB's stake remains a potential variable as Korean Air prepares to complete its integration with Asiana Airlines in December, leaving room for further shifts in Hanjin KAL's shareholder structure.