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Hanjin, LS sign MOU for synergy in urban air mobility infrastructure, operations

Published: 28 Apr. 2025, 18:11 Updated: 28 Apr. 2025, 20:45

Hanjin Group's headquarters in Sogong-dong, Jung District, central Seoul [HANJIN GROUP]

Hanjin Group and LS Group said Monday they signed a partnership to collaborate on urban air mobility (UAM) businesses, with Hanjin focusing on operating aircraft and LS providing infrastructure such as charging facilities. Industry insiders say the two conglomerates also aim to counter Hoban Group, with which both have uneasy relations.

The signing of the memorandum of understanding (MOU) of the two parties took place on Friday, strengthening cooperation in future industries including aerospace and UAM.

Under the agreement, they plan to generate synergy across business areas and seek co-growth opportunities.

UAM has been attracting global attention as a solution to urban congestion and traffic woes. U.S. investment bank Morgan Stanley forecasts the global UAM market to grow from $25.5 billion in 2035 to $1 trillion by 2040. Korea’s Ministry of Land, Infrastructure and Transport projects the domestic UAM market to reach $10.9 billion over the same period.

An OPPAV, a domestically developed aircraft, conducts a test flight at the urban air mobility (UAM) demonstration site at the Korea Aerospace Research Institute’s aviation center in Goheung, South Jeolla, on March 28, 2024. [YONHAP]

Hanjin and LS aim to create synergy by integrating UAM infrastructure and operations.

LS Group will develop aircraft charging stations and communication systems, while Hanjin Group will oversee air traffic management and flight operations. The two groups will further explore collaboration in smart factories, environmentally friendly transport and other areas beyond UAM.

Aerospace and logistics are just the beginning, a Hanjin Group official said.

“We are looking for ways to create synergy across all business areas and identify new opportunities for mutual growth,” the official said.

Industry watchers say the partnership may also serve as a strategic move against Hoban Group. Both Hanjin and LS have contentious histories with Hoban.

Hoban Construction became the second-largest shareholder of Hanjin KAL, the holding company of Hanjin Group, in 2022 by acquiring a 17.9 percent stake from private equity fund KCGI, which had previously engaged in a management dispute with Hanjin. This fueled speculation that Hoban was seeking a foothold in the aviation sector, especially after its 2015 bid for Asiana Airlines’ parent company Kumho Industrial.

Last month, Hoban Construction voted against approving the directors’ compensation limit at Hanjin KAL’s shareholder meeting, signaling opposition to the current management.

Hoban Group's corporate logo [HOBAN GROUP]

Hoban Group’s affiliate Daehan Cable is also under police investigation over allegations of leaking submarine cable technology from LS Cable & System. The two companies have been engaged in a patent dispute for more than five years since 2019.

During this period, Hoban acquired about a 3 percent stake in LS Corp., sparking speculation that it intended to exercise shareholder rights such as inspecting accounting books or demanding director dismissals, although Hoban claimed the investment was purely financial.

“Both Hanjin and LS are concerned about Hoban's attempts to disrupt their management,” a source familiar with the matter said. “While this partnership is still in its early stages, it could eventually lead to deeper ties, such as cross-shareholding or a more formal alliance.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY OH SAM-GWON [[email protected]]