Yanolja was found to have rapidly bought a large amount of shares in Modetour Network, a leading travel agency in Korea, lifting its equity stake to 14.44%. The gap with existing largest shareholder Chairperson Woo Jong-woong and affiliates has narrowed to 1.94%. Yanolja said the purchase was for simple investment, but the industry notes there is a possibility of a future dispute over control of Modetour Network.

Employees work at the Modetour Network headquarters in Jung-gu, Seoul. Jan. 4, 2023 /Courtesy of News1 Hwang Gi-seon

According to the Financial Supervisory Service's electronic disclosure system on the 10th, Yanolja disclosed that it holds 2,729,903 shares of Modetour Network, raising its equity stake from 5.26% to 14.44%. As of Mar. 21 last year, Yanolja held 5.26% (993,234 shares) of Modetour Network, but it gradually increased its equity stake through repeated buying and selling.

The No. 1 shareholder of Modetour Network is still the camp of founder Chairperson Woo Jong-woong. As of the end of Dec., Woo and his special affiliates hold a total of 3,095,446 shares (16.38%). The gap with Yanolja is about 1.94 percentage points.

In the industry, some see the possibility of a control dispute arising from Yanolja's move to lift its equity stake to 14.44% in just one year. The analysis is that it is a strategic step to maximize corporate value through a practical combination with Modetour Network, a traditional powerhouse in the package travel sector.

However, in its filing, Yanolja specified the purpose of holding as "simple investment" and submitted a confirmation that it would exercise only shareholder rights guaranteed by law. A Yanolja official said, "We purchased Modetour Network shares for simple investment."

※ This article has been translated by AI. Share your feedback here.