Is It Right Then but Wrong Now?... LG Family Elders Oppose Lawsuit

Regarding the lawsuit filed by three LG family women against Chairman Koo Kwang-mo over the division of inheritance, it has been reported that most of the family elders oppose the lawsuit. They believe that a dispute over assets is unacceptable in the LG family, which has never had any conflicts over management rights or property for 75 years. Despite the elders' persuasion, the three women who filed the lawsuit are unlikely to easily give up their intentions until the outcome is decided.

On the 14th, according to the LG Corp. shareholding status disclosed by the Financial Supervisory Service, special related parties including relatives of Chairman Koo hold 41.7% of the company's shares. Among them, LG shares held by Chairman Koo's mother, Mrs. Kim Young-sik (4.20%), his younger sister Koo Yeon-kyung, head of the LG Welfare Foundation (2.92%), and Koo Yeon-soo (0.72%) total 7.84%, which is more than other women in the Koo family. This was possible because the late Chairman Koo Bon-moo inherited more assets from the previous generation according to the so-called primogeniture principle, which passes most of the property and management rights to the eldest son. Most women in the LG family, excluding the three women, hold less than 1% of LG shares. The late Chairman Koo Bon-moo's younger sisters, Koo Hwon-mi and Koo Mi-jung, hold only 0.28% and 0.69%, respectively. Also, Koo Ja-young, daughter of the late founder Koo In-hoe, holds only 0.34% of shares.

An industry insider familiar with LG said, "Even within the LG family, which values principles and traditions, there was strong opposition to the inheritance division lawsuit filed by the three women." It was explained that there were discussions within the family during the process of sending a certified letter before filing the lawsuit. The family elders expressed that they could not understand the request to abandon the family agreement and demand inheritance according to legal proportions, as they had handed over property and management rights to the eldest son with mutual consent and understanding to uphold the family tradition that disputes over property should never occur. Within LG, the fact that there has never been a dispute over management rights or property for 75 years has been a source of pride, so there is great concern that this lawsuit might escalate into family discord.

LG stated that after the death of the late Chairman, the inheritance was completed through several family consultations over five months, and since more than four years have passed since the completion of inheritance, exceeding the statute of limitations (three years), there is no legal issue. Meanwhile, as the possibility of this family inheritance dispute leading to a management rights conflict has been raised, LG's stock price has been rising continuously. On the 13th, LG shares closed at 88,300 KRW and surpassed 90,000 KRW during the day, setting a new 52-week high.