[비즈한국] Japan Airlines (JAL) has acquired a stake in Hanjin KAL, drawing significant attention from the business community. The largest shareholder of Hanjin KAL is Hanjin Group Chairman Cho Won-tae and his related parties. However, the Hoban Group also holds a stake in Hanjin KAL at a level similar to that of Chairman Cho. While the Hoban Group maintains that its investment is for financial purposes, the narrow gap in shareholdings means the possibility of a management dispute cannot be ruled out. In such a situation, if JAL acts as an ally to Chairman Cho, it is expected to provide him with substantial support.
According to Japan’s Nikkei, JAL announced on the 3rd that it had entered into a strategic partnership with Korean Air. The main components of the agreement include a significant expansion of codeshare flights and mileage alliances. Additionally, JAL revealed that it has acquired shares in Hanjin KAL, though it did not disclose the exact percentage or the purchase amount.
Choi Jung-ho, Executive Vice President at Korean Air, stated, “Through this strategic partnership, we will be able to maximize customer benefits by combining the excellent infrastructure and know-how held by both companies,” adding, “We will continue to strengthen our competitiveness in the aviation market and provide top-tier service to passengers based on close cooperation with our global partners.” The company did not provide any specific comments regarding JAL’s acquisition of Hanjin KAL shares.
JAL’s acquisition of Hanjin KAL shares is drawing attention because it is linked to the management control of Hanjin Group. Hanjin KAL serves as the holding company for Hanjin Group. Furthermore, Hanjin KAL is the largest shareholder of Korean Air—Hanjin Group’s core subsidiary—with a 26.13% stake. Therefore, securing management control of Hanjin KAL allows for the exercise of management control over Korean Air as well.
Currently, Chairman Cho Won-tae and his related parties hold a 20.57% stake in Hanjin KAL, while the Hoban Group holds 20.15%. Although the Hoban Group has not shown specific interest in managing Hanjin KAL thus far, their stake is at a level where they could potentially aim for control of Hanjin Group if they chose to do so.
A further variable is that Delta Air Lines (US) and the Korea Development Bank (KDB) hold 14.90% and 10.58% stakes in Hanjin KAL, respectively. Both Delta Air Lines and KDB are currently classified as allies of Chairman Cho. Delta has maintained a friendly relationship with Korean Air for a long time, and KDB acquired its Hanjin KAL stake during the process of supporting Korean Air’s acquisition of Asiana Airlines.
The issue lies in what happens after the merger between Korean Air and Asiana Airlines concludes. The merger is scheduled to be completed this December. For KDB, there is no reason to hold onto the Hanjin KAL stake once the task of selling Asiana Airlines is resolved. It is reported that KDB is internally reviewing the sale of its Hanjin KAL shares. In June of last year, KDB indicated to the National Assembly’s National Policy Committee that it would consider plans to recover its investment after taking into account market conditions following the Korean Air-Asiana merger.
If KDB sells its Hanjin KAL stake to an ally of Chairman Cho, the chairman’s control will be solidified. However, if they sell to a hostile party, the calculations become more complex. The possibility that a stake acquirer could team up with the Hoban Group to target management control of Hanjin Group cannot be ruled out.
In this context, if JAL supports Chairman Cho, his management control could be reinforced. Given that JAL has formed a partnership with Korean Air, the prevailing view is that their relationship with Chairman Cho is friendly. However, as there have been no related public disclosures, it is estimated that the amount of Hanjin KAL shares JAL acquired is not significant. Public disclosure is required only when an entity holds more than a 5% stake in a listed company.