Gu Yeon-kyung, the eldest daughter of the late Gu Bon-mu, former chairman of LG Group, and her husband Yoon Kwan, CEO of Blue Run Ventures (BRV), have come under scrutiny due to a series of lawsuits and various allegations.
According to the business community on the 20th, LG Welfare Foundation discussed at the board meeting held on the 10th whether to accept 30,000 shares of bio company A, which Gu Yeon-kyung had expressed her intention to donate, but no conclusion was reached. It is reported that the directors opposed the acceptance, as there was a possibility that the profits might have been obtained from undisclosed information, which could lead to legal issues later.
The minutes of the meeting are expected to be disclosed within the day. According to the Social Welfare Services Act, the board meeting minutes must be published on the internet homepage within 10 days. The date for the next board meeting has not yet been set. Previously, suspicions were raised in the business community that Gu Yeon-kyung might have purchased shares of company A in advance after obtaining insider information before a favorable announcement related to her husband Yoon Kwan was made.
Yoon Kwan has also recently faced a series of lawsuits. In particular, concerns about overhang (potential large-scale sell-off) have increased since the lock-up period for Ecopro Materials, where BRV Capital Management, a venture capital (VC) under BRV led by Yoon, is the second-largest shareholder, was lifted on the 17th.
BRV Capital holds a 24.7% stake in Ecopro Materials through two managed funds. If BRV Capital proceeds with a block deal (large-scale off-hours sale) to exit (recover funds), the stock price could drop significantly. As of the 17th, Ecopro Materials’ market capitalization was 6.7812 trillion KRW, making the value of BRV’s shares simply calculated to exceed 1.6 trillion KRW.
However, a variable factor is that Yoon is currently involved in a lawsuit with the National Tax Service regarding the payment of comprehensive income tax. Yoon is suspected of tax evasion amounting to 12.3 billion KRW. He has filed an administrative lawsuit challenging the National Tax Service’s additional tax assessment. The key issue is whether Yoon, a U.S. citizen, qualifies as a “resident” required to pay comprehensive income tax in Korea. The next hearing is scheduled for the 30th.
There is also a possibility that Yoon may face legal disputes with Shinsegae Group. As the initial public offering (IPO) of SSG.com, Shinsegae Group’s e-commerce platform, is delayed, Shinsegae and financial investors (FIs) ? Hong Kong-based private equity firm Affinity Equity Partners and BRV Capital ? are in conflict over the potential exercise of a put option worth about 1 trillion KRW. These FIs each hold a 15% stake in SSG.com.
In November last year, Cho Chang-yeon, grandson of the late Cho Jung-gu, founder of Sambutogen, filed a lawsuit against his friend Yoon Kwan demanding the return of a 200 million KRW loan. Cho was involved in attracting investment during the sale of the former Renaissance Hotel (now Centerfield), and claimed that Yoon promised to repay the 200 million KRW loan if profits were made from the hotel sale but failed to do so. Yoon’s BRV is a major shareholder of VSL Korea, which acquired the hotel site. The hearing for this lawsuit is scheduled for the 5th of next month.
Meanwhile, Gu Yeon-kyung, along with her mother Kim Young-sik and younger sibling Yeon-su, filed a lawsuit in February last year at the Seoul Western District Court against Chairman Gu Kwang-mo, demanding a redivision of the inherited property. During the trial, a recorded family conversation was revealed in which Yoon appeared, drawing attention to whether Yoon was involved in the lawsuit.
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