Launch of Gubonjun-led LX Holdings... Enduring 'No.1 DNA' Leadership

Estimated 8 Trillion KRW Asset Size, Ranked Around 50th in Business
LX Global as Group Core
Investing in Overseas Resource Development
Active in Industrial Materials and IT Solutions
From Waste Collection, Transport, and Disposal
To E-commerce, Medical Testing, and Tourism
Many Business Purposes Added

[Asia Economy Reporter Choi Dae-yeol] LX Holdings, which officially launched after separating from LG Corporation, held its split report and inaugural board meeting on the 3rd and officially began operations. Koo Bon-joon, Chairman of LX Group and CEO of the holding company, urged employees to have a ‘No.1 DNA’ just as he did during his tenure as CEO of major LG affiliates. When his nephew Koo Kwang-mo became Chairman of LG Group in 2018, Koo Bon-joon stepped down from frontline management to become an advisor.

The companies in which LX Holdings holds shares include LX Global (formerly LG Sangsa), LX Hausys (under the new name), LX MMA, LX Semicon, and LX Pantos (a subsidiary of LX Global). The asset size is about 8 trillion won, and its estimated ranking in the business world is around 50th.

LX Global, a general trading company engaged in resource development and infrastructure projects, is considered the core of the group. Like other general trading companies, it started with import-export operations within the group and has invested early in overseas resource development since the 1980s. It currently operates power generation projects in various countries and is active in industrial materials and IT solutions. While expanding its overseas palm oil business as part of securing food resources, it plans to seek new business opportunities in healthcare and eco-friendly sectors. The company has newly added numerous business purposes including waste collection, transportation, and disposal for promoting eco-friendly projects, as well as development of e-commerce, digital content, platforms, medical testing, analysis, diagnostics, tourism, and lodging.

LX Semicon has mainly traded with LG Electronics and LG Display but is expected by the industry to handle silicon carbide (SiC) power semiconductors and microcontroller units, which will see increased use in electric vehicles and other applications. LX Hausys (building materials) and LX Semicon (fabless) compete for first and second place domestically in their respective industries, while Pantos (logistics) and LX MMA (petrochemical products) are also regarded as competitive in domestic and international markets. Pantos is rumored to have an initial public offering (IPO) possibility. Earlier, LG Corporation announced LX’s spin-off plan stating that "(LX Holdings) plans to actively utilize external capital markets such as IPOs and seek various new business and merger & acquisition (M&A) opportunities to enhance corporate value."

Chairman Koo led LG Group’s growth as CEO of LG Display, LG Electronics, and LG Sangsa. Although he stepped away from management for a while, he took the helm again as CEO for this new start. Since new businesses must be found and employee morale raised, he took full responsibility. His emphasis on ‘No.1 DNA’ wherever he served as CEO is well known.

In 1999, when he became CEO of LG Display, he put the slogan ‘No.1 Employee, No.1 Company’ on company business cards, and when CEO of LG Electronics, he reportedly greeted meetings with “Let’s be No.1.” Song Chi-ho, an advisor at LG Sangsa who had been a trading man since the Lucky-Goldstar days, will also serve as co-CEO of the holding company. Although there was a conflict over the use of the English name with Korea Land and Geospatial Informatix Corporation (LX), they agreed to share the name LX on the 30th of last month, just before the launch.