Hanjin KAL's stock price reached the upper limit (highest daily price cap) for the second consecutive day. This appears to be due to concerns over a management dispute as Hoban Group expands its equity stake in Hanjin KAL.
Hanjin KAL common shares traded at 150,600 won on the KOSPI market at 9:15 a.m. on the 14th. The stock rose by 34,700 won (29.94%) compared to the previous day. The stock price, which was in the 80,000 won range, is hitting consecutive upper limits, setting new all-time highs.
At the same time, Hanjin KAL preferred shares (Hanjin KAL preferred) were traded at 38,600 won, up by 29.97% (8,900 won) from the previous day.
Hanjin KAL is the parent company of Korean Air. The largest shareholders are Chairman Cho Won-tae and related parties. They hold 30.54% of Hanjin KAL's equity, which includes a stake from the Korea Development Bank (10.58%). Delta Air Lines, viewed as a friendly shareholder, also holds 1.49% of Hanjin KAL's equity.
Hoban Group has been purchasing additional equity in Hanjin KAL through Hoban Hotels and Resorts and Hoban Construction. The total equity stake is 18.46%. Excluding the Korea Development Bank's stake, the gap in equity with Chairman Cho's side is only 1.5 percentage points.