Hoban Group Acquires Additional Hanjin Kal Shares, Files Business Combination Report with FTC

Hoban Group has acquired additional shares in Hanjin Kal, the holding company of Hanjin Group, and filed a business combination report with the Fair Trade Commission (FTC) regarding the possibility of becoming the largest shareholder.

According to industry sources on Monday, Hoban Group recently secured additional shares of Hanjin Kal through open-market purchases.

Previously, as of July 10, Hoban Group held a 20.15% stake in Hanjin Kal, narrowing the gap with Hanjin Group Chairman Cho Won-tae's stake (20.57%) to 0.42 percentage points and becoming the second-largest shareholder.

Hoban Group explained that it filed for a business combination last month in accordance with Fair Trade Act regulations, as subsequent additional purchases raised the possibility that its stake has surpassed that of Chairman Cho, and it is currently awaiting the results.

The Fair Trade Act stipulates that companies with total assets or sales exceeding statutory thresholds must report a business combination when acquiring 15% or more of the shares of another listed company, and again when subsequent additional acquisitions make them the largest shareholder.

The FTC is required to review business combinations for potential restrictions on competition within 30 days of the filing date, though this period can be extended by up to 90 days if deemed necessary.

When Hoban Group disclosed its additional purchase of Hanjin Kal shares back in July, it stated that the purpose of the acquisition was "simple investment," but some in the market have interpreted the move as having mergers and acquisitions (M&A) in mind.

However, Delta Air Lines and the Korea Development Bank, known to be friendly stakeholders supporting Chairman Cho, held 14.9% and 10.58% stakes in Hanjin Kal respectively as of their semi-annual report at the end of June, meaning their combined stakes significantly outpace that of Hoban Group.

The National Pension Service, which could also serve as a variable, currently holds a 5.46% stake in Hanjin Kal.

(Photo: Provided by Hoban Group, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.