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SEOUL, Feb. 12 (Korea Bizwire) — A South Korean court on Thursday ruled in favor of LG Group Chairman Koo Kwang-mo in a closely watched inheritance dispute that tested both family ties and the governance traditions of one of the nation’s largest conglomerates.
The Seoul Western District Court dismissed a lawsuit brought in February 2023 by Kim Young-sik, the widow of the late LG chairman Koo Bon-moo, and his two daughters. The plaintiffs had sought to nullify the inheritance arrangement that followed Koo Bon-moo’s death in May 2018 and to redistribute the assets under statutory inheritance rules.
At the time of his death, the elder Koo left behind assets valued at roughly 2 trillion won, or about $1.38 billion, including an 11.28 percent stake in LG Corp., the holding company of South Korea’s fourth-largest business group. Chairman Koo Kwang-mo, who had been adopted by his uncle in 2004 and designated as successor, inherited an 8.76 percent stake in the holding company.
Under the original settlement, Kim and her two daughters received assets worth about 500 billion won, including minority stakes in LG Corp. — 2.01 percent for the elder daughter and 0.51 percent for the younger — as well as financial investments, real estate and artwork.
LG Group Chairman Koo Kwang-mo (Image courtesy of LG)
The plaintiffs argued that the estate should be divided anew according to Korean inheritance law, which provides that a spouse and children inherit in a 1.5-to-1 ratio. Chairman Koo’s legal team countered that a family agreement and testimony from senior executives demonstrated the late chairman’s clear intent to transfer management control and key corporate holdings exclusively to his chosen successor.
The court sided with the chairman, accepting the argument that the distribution reflected the elder Koo’s wishes and dismissing the family’s claims.
The ruling reinforces a long-standing tradition among South Korea’s family-controlled conglomerates, in which management authority is concentrated in a single heir to preserve stability and continuity. For LG, the decision removes a cloud over its leadership succession at a time when the group faces intensifying competition in electronics, chemicals and advanced materials.
Jerry M. Kim (jerry_kim@koreabizwire.com)
