Cho Won-tae and Cho Hyun-ah

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Hanjin Group, parent of South Korean flag carrier Korean Air Lines, faces a perfect storm amid brewing fight among shareholders – from owner family to activist funds – in a contest over the helm at the transportation conglomerate without a sure captain.

According to industry sources on Thursday, Cho Hyun-ah, the eldest of the late patriarch Cho Yang-ho who had publicly challenged her brother over management, has reportedly been contacting the largest shareholders outside the family - KCGI, an activist fund that holds the second-largest stake of 17.29 percent in the group’s holding entity Hanjin Kal and Bando Engineering & Construction Co., the No. 4 shareholder with an 8.28 percent stake, to coax them to back her.

Cho owns 6.49 percent of Hanjin Kal. If she can bring in KCGI and Bando E&C, she can comfortably take up her brother Cho Won-tae, who was made the legal representative of Hanjin following the sudden death of their father in April last year, by gathering total voting rights of 31.98 percent.

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The only son in the family who succeeded to the top executive position holds a 6.52 percent stake and has Delta Air Lines with 10.0 percent share at his side. If he can persuade others in the family – his mother and youngest sister who inherited equal stake -, he can muster up 32.45 percent.

The sibling feud became formal last month after heiress famous for her “nut rage” accused her brother of disobeying their father’s dying wishes to co-manage the business as a family.

Their moment of truth will be the shareholders meeting in March when shareholders will vote whether to re-elect Cho Won-tae to the board.

It so far remains doubtful if Cho Hyun-ah can gather KCGI and Bandon to her side, given the bad publicity she had cost the company with her nut rage scandal and her title as an executive at the airliner in 2014.

It also is uncertain whom the rest of the family is backing. The mother owns 5.31 percent and younger sister 6.47 percent. Another vote that counts is National Pension Service with a 4.11 percent stake.

On Thursday, shares of Hanjin Kal closed 0.84 percent higher at 41,850 won ($36.11) and those of Korean Air Lines up 1.48 percent at 27,500 won in Seoul.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]