As corporate control disputes between Hanjin Kal and Korea Zinc, both listed on the KOSPI, reignite, their stock prices are also affected. Since August, both companies have shown a gradual upward trend, but market sentiment regarding their stock outlook differs somewhat.
On the 1st, Hanjin Kal closed at 129,800 won on the Korea Exchange, down 2.41% from the previous trading day. The stock has been trending upward since late July when it traded in the 100,000 won range. While recent positive factors include reduced fuel cost burdens, stable exchange rates, and recovery in international passenger demand, the market believes the corporate control dispute is stimulating investor sentiment.
Hoban Construction, which became Hanjin Kal's second-largest shareholder in 2022, has continuously increased its holdings, recently reaching 20.15%, sparking renewed attention to the share battle. The gap between Hoban Construction and the first-largest shareholder Jo Won-tae (Chairman) is a mere 0.41 percentage points.
There have been no specific statements yet indicating that Hoban Construction is targeting Hanjin Kal's corporate control; it maintains its position as an investment motive. Considering the 40th%+ stake held by entities friendly to Jo (Chairman), including Delta Air Lines and Korea Development Bank, alongside Jo (Chairman)'s holdings, some forecasts suggest a full-blown corporate control dispute may not occur.
However, the market and investors are closely watching Hoban Construction's continuous increase in its Hanjin Cal stake.
Consequently, if Hoban Construction considers taking over Hanjin Cal's corporate control, it would have no choice but to make additional purchases, creating a market sentiment that could lead to a sharp stock price surge.
Additionally, analysts suggest that Korea Development Bank, holding 10.58% of shares, may sell its stake after year-end when the integration of Korean Air and Asiana Airlines is finalized. If Hoban Construction targets this opportunity, the corporate control competition could accelerate further.
A securities industry official stated, "In the second quarter of last year, Hoban Construction increased its stake by 1 percentage point, causing Hanjin Kal's stock to hit the upper limit for two consecutive days," adding, "Regarding Hanjin Kal, the market and investors view that there are still events remaining that could add further corporate control premium."
Not only Hanjin Cal but also Korea Zinc's corporate control dispute has recently resurfaced. Two years have passed since September 2024 when Yeongpoong and private equity fund MBK Partners attempted a hostile M&A (merger and acquisition), yet the legal battles and boardroom struggles between both sides remain at an impasse.
Particularly, industry attention is focused on which side's candidate will be elected as an auditor at the extraordinary general meeting of shareholders on the 9th. The reason both sides are currently engaged in a tug-of-war over allegations that Korea Zinc's largest shareholder family used part of an investment fund for investments in unlisted companies is seen as a strategy to gain advantage in the upcoming extraordinary general meeting.
Korea Zinc's stock price has also generally trended upward since August, though it recently fell nearly 10% over two trading days. While challenges both inside and outside corporate management exist, including the strategic issue of securing global critical mineral supply chains, some argue that the resurgence of a dispute where no premium is visible in the corporate control conflict has increased investor fatigue.
Unlike Hanjin Cal, which may reach a stage requiring someone to purchase additional shares due to a vote showdown, the market believes Korea Zinc's corporate control dispute has shifted to a board leadership struggle and thus has no direct relation to stock prices.
Another securities industry official remarked, "The core of both companies' corporate control disputes is that one involves a situation where someone must buy more shares in the future, while the other has already seen significant accumulation, now dividing over who secures voting rights," adding, "The market and investors are viewing the next steps differently."
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