LG그룹과 4세 경영

Abstract

This paper concerns how, in LG Group(4th largest chaebol in 2019), the owner family has been involved in the ownership and management and how Kwang-Mo Koo has succeeded his father Bon-Moo Koo as the group chairman and representative owner. (A) The Koo family’s ownership began to be established in 2001 when LG Chemicals became a holding company called LGCI Corporation and, from 2003, has been strengthened as LGCI Corporation was reorganized into LG Corporation. As of 2019, LG Corporation controls the group’s all the 71 companies, except one, as son(13), grandson(50) and grand-grandson(8) companies. (B) In the ownership of LG Corporation were involved, in 2000-2019, a total of 23 members consisting of one from the second generation, 10 from the third and 12 from the fourth. In 2004-2019, the family members together had 44-49% of the total shares in the holding company. In May 2018, Bon-Boo Koo died and, without delay, his adopted son Kwang-Mo Koo became the group chairman (in June) and the representative owner (in November). ‘The succession of the ownership and control by the fourth generation in LG Group in 2018’ was the first among Korean chaebols. (C) It is expected that the case of LG Group will become an important reference in studies of the family ownership and control as well as the succession by later generations in other Korean chaebols including Doosan Group, in which the succession by the fourth generation also took place.