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Hoban Group headquarters in Seocho-gu, Seoul (Photo: Hoban Group) |
[Alpha Biz= Paul Lee] Hoban Group has reportedly sold its entire stake in LS Corp., securing at least KRW 200 billion in cash and drawing attention to its next strategic move. Given Hoban’s history of aggressive investments in listed companies, the market expects the group to pursue additional stake purchases—most notably in Hanjin KAL, where it already holds more than an 18% stake. Concerns are emerging that a non-aviation conglomerate increasing control over the parent company of Korean Air could destabilize Korea’s key national infrastructure industry.
Industry sources said Hoban raised its LS Corp. stake to more than 4% through on-market purchases earlier this year, then sold the entire position in October when LS shares had nearly doubled since March. The sale is estimated to have generated over KRW 200 billion.
Hoban is also positioned to secure additional liquidity next year. Two rental-to-sale apartment projects in Gumi and Chuncheon are expected to generate roughly KRW 160 billion in cash, and combined operating profits across major subsidiaries could bring total liquidity to over KRW 400 billion.
Although Hoban Construction stated it could not confirm details regarding the LS stake sale or any related capital-use plans, investment industry officials widely expect the newly secured funds to be used to increase its stake in Hanjin KAL.
Hoban currently owns 18.46% of Hanjin KAL—close to the 20.52% held by Chairman Cho Won-tae and affiliated parties. Based on the recent share price of around KRW 101,000, the proceeds from the LS stake sale alone could allow Hoban to purchase more than 2 million additional shares—over 3% of the company—and potentially overtake the controlling group.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
