LG Group's Top 3 Advertising Firms Unite... G2R Merges with HS Ad and Elvest

Change of Company Name to 'HS Ad'

Three advertising companies affiliated with LG Group will unite into one through the merger of subsidiaries under the holding company G2R.

G2R announced on the 28th that it will absorb and merge its 100% subsidiaries HS Ad and Elvest. The merger ratio was announced as 1 to 0 for G2R to HS Ad and G2R to Elvest, respectively. The merger date is set for July 1.

The company explained the purpose of the merger as "to focus capabilities and resources on strengthening integrated marketing competitiveness in the digital era and to provide customers with advanced value."

[Photo by G2R website capture]

Until now, G2R has played the role of a holding company managing HS Ad and Elvest, which actually conduct advertising business, generating revenue through subsidiary dividends and management service fees. With this three-company merger, a single company directly leading the advertising business will be launched. G2R will change its name to HS Ad and expand its business scope as it merges its subsidiaries.

At the regular shareholders' meeting of G2R held on the 24th, the proposal to amend the articles of incorporation to change the company name to HS Ad was approved as originally proposed. The amendment also includes adding business purposes such as ▲international conference planning ▲construction ▲business facility maintenance services ▲management consulting. The company explained that the name change and addition of business purposes will take effect from the date of dissolution registration of the existing HS Ad.

G2R originated from the advertising department of Lakhee Chemical (currently LG Chem), the first advertising organization in LG Group. The Lakhee Chemical advertising department evolved through Heesung Industry and was established as an independent comprehensive advertising company, LG Ad, in 1984. LG Ad was sold to the multinational advertising group WPP in 2002 and then split into the advertising holding company G2R and the business subsidiary LG Ad in 2004. Later, LG Ad changed its name to HS Ad. In 2008, LG Corporation reacquired management rights of G2R, reintegrating it into LG Group.