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Family of LG head files inheritance litigation against Chairman Koo Kwang-mo

Published: 10 Mar. 2023, 17:52 Updated: 10 Mar. 2023, 17:56

LG Electronics' headquarters building in Yeongdeunpo Distrcit, western Seoul [YONHAP]

The adoptive mother and siblings of LG Chairman Koo Kwang-mo filed an inheritance litigation against the 45-year-old company head, initiating a rare legal family dispute in Korea’s fourth largest conglomerate.

The family members claimed that Koo, an only son adopted by the late Koo Bon-moo, former LG chairman, has no right to inherit a major portion of assets by the patriarch, requesting the Seoul Western District Court review the inheritance decision made four years ago. The total assets left behind were 2 trillion won ($1.5 billion), and the three women were given 500 billion won combined.

The plaintiffs include Kim Young-sik, the widow of the late chairman, and their two daughters — Koo Yeon-gyung and Koo Yeon-soo.

LG, however, said that the inheritance ruling is a result of the settlement decided upon by the four family members.

LG Chairman Koo Kwang-mo

“It is hard to understand that [the mother and two daughters] filed a complaint four years after the inherited assets were divided following multiple discussions that lasted five months, and after the three-year statute of repose passed,” LG said, mentioning the statute that cuts off certain legal rights if they are not acted upon by a specified deadline.

Koo Kwang-mo is actually the eldest son of the LG patriarch’s younger brother Koo Bon-neung, the chairman of Heesung Group, but he was adopted in 2004 by his son-less uncle.

At the time, the group said that the adoption was done to carry on the family’s leadership according to Confucian tradition, in which first sons take over family affairs.

The plaintiffs claim that the adoptee status of Koo Kwang-mo makes him unqualified for the inheritance, an argument countered by LG.

“The four discussed the issue over and over and finally reached an agreement that Koo Kwang-mo would inherit shares of LG for corporate management, and Kim Young-sik and the two daughters would receive 500 billion won in assets including financial investment products, properties and artworks,” the Group said in a statement.

Following the death of Koo Bon-moo in 2019, Koo Kwang-mo gained an 8.67 percent stake or 720 billion won worth of LG shares. Koo Yeon-gyung was given a 2.01 percent stake and Koo Yeon-soo 0.51 percent. The widow was given none of the shares.

K1 Chamber, a Seoul law firm responsible for handling the three women’s case, declined to comment about the ongoing lawsuit.

LG also blamed the three plaintiffs for ruining a corporate reputation as the group had never been involved in a major family dispute over management and inheritance, in contrast to Samsung and Hyundai.

“At LG, It is unacceptable [for any family member] to disrupt the management and tradition of LG by demanding more inheritance,” said a source at LG.

BY PARK EUN-JEE [[email protected]]