News
Korean Air CEO sheds equity in Hanjin Group
May 15th 2025
Hoban Construction has increased its holding in Hanjin KAL, the parent company of Korean Air (KAL), in a transaction that shrinks the ownership gap with the group’s largest shareholder, Hanjin Group, to 17.44%. Korean Air CEO, Walter Cho, is chairman of the parent group. Read More » Hoban Group maintains the acquisition is intended solely for investment purposes, but market watchers view it as a precursor to a potential management tussle that could reshape the balance of power within Hanjin Group, reports The Korea Times. Cho and his allies hold equity of 30.54% in Hanjin KAL of which 10.58% is owned by the Korea Development Bank (KDB). Excluding the KDB holding, Cho’s effective ownership in Hanjin KAL drops to 19.96% - only 1.5% more than the Hoban Group. If KDB sells its shares, the new ownership register potentially could jeopardize Cho’s control of the group. A possible issue of dispute surfaced at a Hanjin KAL shareholder meeting in March. Hoban Construction opposed an increase in the ceiling of board director compensation from 9 billion won ($6.3 million) to 12 billion won. Hoban’s 2015 interest in acquiring Kumho Industrial, the former parent of Asiana Airlines, has fueled speculation the construction giant may enter the aviation industry.
