[Featured Stock] Hoban Joins Patent Dispute of Electric Wire Subsidiary... LS Stock Price Soars

On the 13th, LS's stock price is soaring. This comes amid conflicts between Daehan Electric Wire and LS Cable & System, as Hoban Group, the parent company of Daehan Electric Wire, reportedly purchased a portion of the shares of LS, the parent company of LS Cable & System.

As of 9:27 a.m. on the same day, LS is trading at 116,700 KRW, up 14,900 KRW (14.64%) compared to the previous trading day.

According to the investment banking (IB) industry, Hoban Group recently confirmed the purchase of some LS shares. Hoban Group explained that the purchase was made purely as an investment, seeing the growth potential of the power industry. Hoban Group entered the cable business by acquiring Daehan Electric Wire in 2021.

However, the industry views this as a strategic move to secure an advantageous position by acquiring shares on the LS side amid the ongoing conflict between Daehan Electric Wire and LS Cable & System. Since 2019, LS Cable & System and Daehan Electric Wire have been embroiled in legal disputes over patent infringement and submarine cable technology leaks. LS Cable & System is an unlisted company, with its parent company LS holding 92.26% of the shares.

If Hoban Group secures more than 3% of LS shares, the offensive against LS management could intensify. Under the Commercial Act, shareholders holding more than 3% of shares can exercise rights such as requesting an extraordinary shareholders' meeting, proposing shareholder motions, requesting dismissal of directors and auditors, and inspecting accounting books.

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