Individual investors account for 47% of Korean Airlines Co.,Ltd.'s (KRX:003490) ownership, while public companies account for 26%

Key Insights

• The considerable ownership by individual investors in Korean AirlinesLtd indicates that they collectively have a greater say in management and business strategy
• A total of 21 investors have a majority stake in the company with 50% ownership
• Institutions own 24% of Korean AirlinesLtd

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If you want to know who really controls Korean Airlines Co.,Ltd. (KRX:003490), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And public companies on the other hand have a 26% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Korean AirlinesLtd.

Check out our latest analysis for Korean AirlinesLtd

What Does The Institutional Ownership Tell Us About Korean AirlinesLtd?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Korean AirlinesLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Korean AirlinesLtd's historic earnings and revenue below, but keep in mind there's always more to the story.

Korean AirlinesLtd is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Hanjin Kal with 26% of shares outstanding. National Pension Service is the second largest shareholder owning 9.0% of common stock, and Korea Development Bank, Asset Management Arm holds about 3.3% of the company stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 21 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Korean AirlinesLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that Korean Airlines Co.,Ltd. insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own ₩4.8b worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 47% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 26% of Korean AirlinesLtd. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Korean AirlinesLtd you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.