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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Pan Ocean, a shipping affiliate of Harim Group, has acquired a 0.24% stake in LS Group, a move interpreted by some industry observers as indirect support for Hoban Group in its ongoing patent dispute with LS Group over Daehan Cable.
According to a filing with the Financial Supervisory Service on August 13, Pan Ocean purchased 76,184 LS common shares for ₩12.3 billion (US$9.1 million) in May, stating that the acquisition was for investment purposes. Pan Ocean, a bulk carrier operator, is 54.72% owned by Harim Holdings. Its business does not overlap with LS Group’s core cable operations.
The stake purchase comes amid heightened tensions between LS Group, owner of LS Cable & System, and Hoban Group, owner of Daehan Cable. In April, LS Cable won a damages lawsuit against Daehan Cable over alleged patent infringement involving joint kits for bus duct systems. Earlier this year, Hoban Group acquired over 3% of LS’s shares, raising speculation that the dispute could escalate into a battle for management control.
Analysts suggest Harim Group’s move may align it with Hoban Group, which is seen as challenging LS’s governance. In response, LS Group has strengthened ties with Hanjin Group—also in conflict with Hoban—through business and capital arrangements.
In May, LS announced plans to issue ₩65 billion in exchangeable bonds to Korean Air to raise funds for debt repayment. Additionally, LS Group affiliate Inveni purchased 1,000 LS shares at ₩164,598 per share in the same month.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
