'Partial Overpayment of Inheritance Tax'... LG Chairman Koo Kwang-mo's Lawsuit

LG Group Chairman Koo Kwang-mo is reported to have filed a lawsuit against the tax authorities on the grounds that 'some of the inheritance tax is excessive.'

According to the business community on the 16th, Chairman Koo filed a lawsuit last year in the second half against the head of Yongsan Tax Office at the Seoul Administrative Court, along with his mother Mrs. Kim Young-sik and his two younger sisters Koo Yeon-kyung, CEO of LG Welfare Foundation, and Koo Yeon-su.

They are said to have filed the lawsuit to seek the court's judgment regarding the value of the 1.12% stake in LG CNS inherited from the late former Chairman Koo Bon-moo.

It is reported that there was a disagreement between Chairman Koo's side and the tax authorities over the valuation of the unlisted company LG CNS's shares during the inheritance tax payment process.

The amount that the plaintiff can receive if the plaintiff wins the lawsuit is 1 billion KRW. This is not a large amount compared to the 990 billion KRW inheritance tax imposed on the LG family.

The heirs, including Chairman Koo, have been paying the inheritance tax in installments over five years through the installment payment system since the inheritance tax declaration in November 2018. The inheritance tax that Chairman Koo has to pay is about 720 billion KRW. It is expected to be fully paid by the end of this year.

The assets left by the late former Chairman Koo Bon-moo amount to about 2 trillion KRW, including 11.28% of LG shares.