LG to name heir apparent to board

Industry

Published: 27 Jun. 2018, 19:35

LG to name heir apparent to board

Shareholders of LG Group’s holding company are moving to welcome Koo Kwang-mo, the adopted son of late chairman Koo Bon-moo, as a member of its board this week, industry watchers said Wednesday, paving the way for the transfer of power within one of Korea’s leading conglomerates.

LG Corp plans to hold a shareholders’ meeting on Friday and vote to name the younger Koo as a board member, effectively marking the inauguration of the fourth-generation leadership for the conglomerate.

The late business tycoon died in May at the age of 73, after going through several brain surgeries earlier this year.

He left behind two daughters and Koo Kwang-mo, whom he adopted from his younger brother Koo Bon-neung in 2004. The LG family has handed over power to the chairman’s eldest son whenever there is a transition of leadership since its founding.

Koo Kwang-mo studied at Rochester Institute of Technology and joined LG Group by starting his career at the financial division of LG Electronics in 2006. He also worked at the U.S. arm of LG Electronics and its Changwon-based production line in southeastern Korea.

Industry watchers said LG Group did not suffer a major disruption in its business since the late leader’s death, which indicates that the conglomerate maintains a solid decision-making system among its top brass.

Accordingly, Koo Kwang-mo is expected to refrain from making major changes in the leadership structure for the time being.

“The succession was made rather abruptly. Therefore, it is important to seek stability of the group,” an LG Group official said. “Considering this, the current system is likely to continue at least till the end of this year.”

Meanwhile, Koo Bon-joon, the younger brother of the late tycoon, is widely expected to leave LG Group in the near future. He currently holds a 7.72 percent stake in the holding firm.

Industry watchers said one of Koo’s major tasks is to foster new growth engines for the group, especially as LG’s current key businesses, electronics and chemicals, are facing slowed growth.

Yonhap