Hanjin Kal's 'Sibling Conflict' Intensifies, Stock Price Soars Threefold in One Year...

From 27,900 KRW to 96,000 KRW in One Year
Record Highs Broken 7 Times This Year
Investment Opinion 'Neutral' Amid Overheating Concerns in Securities Sector

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The stock price of Hanjin KAL, the holding company of Hanjin Group, has tripled in one year. As the management rights dispute intensifies, it continues to hit new record highs daily. The securities industry is pointing out that the stock price increase is showing signs of overheating.

According to the Korea Exchange on the 4th, Hanjin KAL's stock was trading at around 88,000 KRW as of 9:30 AM that day. This is three times the closing price of 27,900 KRW on March 4 last year. The previous day, it set an all-time high of 83,500 KRW, and at the opening of the market that day, it recorded a new high again at 96,000 KRW. This is the seventh time this year alone that a new high has been recorded. This appears to be due to news that both Chairman Cho Won-tae's side of Hanjin Group and the 'Anti-Cho Won-tae Alliance,' which is engaged in a management rights dispute ahead of the regular shareholders' meeting scheduled for the end of this month, have each increased their shareholding ratios.

On the 2nd, Grace Holdings, an investment purpose company under KCGI, an activist private equity fund (PEF) known as the 'Kang Sung-bu Fund,' disclosed that it had purchased additional shares of Hanjin KAL, raising its stake to 17.68%. As a result, the Anti-Cho Won-tae Alliance, formed on the 31st of last month, now holds 37.63% (KCGI 17.68%, former Vice President Cho 6.49%, Bando Construction 13.3%). Chairman Cho's friendly shares amount to 41.75%, including the family excluding former Korean Air Vice President Cho Hyun-ah (22.45%), Delta Air Lines (13.5%), Kakao (2%), and Korean Air's self-insurance, employee association, and employee stock ownership association (3.80%).

Hanjin KAL's stock price, which had been quiet until the end of last year, began to rise significantly after the formation of the Anti-Cho Won-tae Alliance. However, the securities industry is rather refraining from setting target prices. Shinhan Investment Corp. has not adjusted its target price of 31,000 KRW, released in October last year. Yuanta Securities also maintained a 'neutral' investment opinion and the target price of 33,000 KRW presented in August last year in its report released on the 24th of last month. Most other securities firms have also downgraded their investment opinions to 'neutral' and have not newly set target prices.

A financial investment industry official said, "There are many opinions that the stock price rise due to the management rights dispute is excessive," adding, "It is difficult to know the outcome of the management rights dispute, and it is still uncertain whether it will lead to internal improvements in profitability, so it seems that judgment is being deferred."

This content was produced with the assistance of AI translation services.