LS Group's Koo Cha-hong dies at 76

Koo Cha-hong

Koo Cha-hong, who grew the LS Group into an electric component giant after splitting off from LG, died on Friday at the age of 76.

The group said he died of a disease without being specific.

Koo was the eldest son of Koo Tae-Hwoi, the fourth of six brothers in the LG Group's founding family.

He is credited with transforming LS Group into Korea's 13th largest conglomerate by assets.

During his chairmanship between 2004 and 2012, he focused on entering new markets and mergers and acquisition.

He also diversified the group's businesses beyond electronics and metal to include energy.

Sales of the group were 7 trillion won in 2004 and grew nearly three times to surpass 20 trillion won in 2012.

Koo was the first chairman of LS Group, following its split from LG Group in 2003.

Prior to that split, he spearheaded overseas expansion and digital transformation at LG affiliates.

Upon graduating from Princeton University with a major in economics in 1973, he entered LG’s trading unit, now named LX International. Koo worked at the company’s overseas branches in Hong Kong and Singapore.

Moving to LG Electronics in 1995 as CEO, he headed the process of applying digital technology to reinvent business models and transform the company's products and customer experiences.

According to LS Group, Koo played an integral role in creating a management succession philosophy that would help brothers or even cousins pass on business management responsibilities without major disputes between siblings or relatives.

That philosophy was reflected when he transferred the chairmanship of LS Group to Koo Cha-yol, the eldest son of his uncle Koo Pyong-hwoi, in 2014.

The smooth transition set an example of a succession between cousins or siblings.

He went on to serve as chairman of LS Nikko Copper until he died. He took the title in 2015 following the sudden death of his brother Koo Cha-myung, its former chairman.

At LS Nikko Copper, Koo tried to foster a horizontal corporate culture to improve communication among workers at different levels. He designated specific dates for executives and young employees to come together and talk about different topics while having beers.

He is known for leading a family-oriented life and often emphasized the importance of family to employees.

He is survived by his wife, a son and a daughter.

Koo's funeral is to be held at the Asan Medical Center in southeastern Seoul and the service will take place at 8:00 a.m. on Feb. 15. He will be buried in Opo, Gwangju, Gyeonggi.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]