Amid a conflict between the LS Group, which owns LS Cable & System, and the Harim Group, which owns Taihan Cable & Solution, Harim Group's subsidiary Pan Ocean has purchased shares of LS, the holding company of LS Group. There are analyses suggesting that Harim is stepping in as an ally of Ho-ban, with whom they have a friendly relationship.
According to the Financial Supervisory Service's electronic disclosure system on the 14th, Pan Ocean acquired 76,184 shares (equity ratio 0.24%) of LS on May 16 for 12.279 billion won. The purchase price per share was 161,175 won, which translates to a valuation profit of 672 million won based on the closing price of 170,000 won on the 13th.
Pan Ocean stated that the purpose of the investment was 'simple', but interpretations suggest that it acquired the equity to empower the Harim Group. Harim, which holds a 54.72% equity stake in Pan Ocean, maintains a notable friendly relationship with Ho-ban. When Harim Group sought to acquire the nation's largest shipping company, HMM, in 2023, Ho-ban provided financial support.
LS Cable & System and Taihan Cable & Solution engaged in a legal dispute over a bus duct joint patent for five years and eight months. The lawsuit began in 2019 when LS Cable & System filed a claim against Taihan, alleging that it misappropriated the technology for the bus duct joint and infringed on its patent rights. A bus duct is a distribution means for delivering electrical energy to buildings, and a joint is a component connecting the bus ducts.
In April of this year, LS Cable & System won the case, and both companies did not appeal, confirming the second trial ruling. The second trial court determined that Taihan had infringed the patent rights of LS Cable & System and ordered it to pay 1.51628 billion won in damages.
The defeated Ho-bang Group purchased shares of LS Group's holding company LS and is known to have secured over 3% equity. According to corporate law, shareholders holding more than 3% of the total issued shares can convene an extraordinary general meeting, exercise the right to inspect accounting records, and propose shareholder proposals.
LS Group has expressed discomfort about Ho-bang Group's equity acquisition but noted that the combined equity stake of the largest shareholder family is 32.10%, which does not pose a threat to management rights. A company official stated, 'I understand that Ho-bang's purchasing trend of LS shares has quieted recently.'
LS Group currently has Hanjin Group secured as an ally. Hanjin Group is also experiencing a conflict with Ho-bang Group over the management rights of Hanjin KAL, the parent company of Korean Air, owning an 18.46% equity stake.