Who Owns LG Company?

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Who Owns LG Corp.?

Understanding LG Corp.'s ownership is key to grasping its strategic direction and governance. The ongoing inheritance dispute within the Koo family underscores this importance for the multinational conglomerate.

Founded in 1947, LG Corp. has grown into South Korea's fourth-largest chaebol, with operations spanning electronics, chemicals, and telecommunications. In 2024, LG Corp. reported KRW 7.18 trillion in consolidated revenue, while LG Electronics achieved a record KRW 87.73 trillion in revenue.

The ownership structure of LG Corp. is complex, primarily influenced by the founding Koo family and institutional investors. Key stakeholders include the Koo family members, who hold significant direct and indirect stakes through various affiliated companies and trusts. Institutional investors, both domestic and international, also play a role, contributing to the company's capital and influencing its governance through their shareholdings. Understanding the distribution of voting rights among these stakeholders is crucial for assessing control and decision-making power within the conglomerate. The company's diverse product portfolio, including innovations in home appliances and displays, reflects the collective influence of its ownership and management.

The foundation of LG Corporation traces back to 1947, established by Koo In-hwoi. Its initial venture, Lak Hui Chemical Industrial Corp., evolved into LG Chem, marking the beginning of a diversified business vision. This early expansion saw the company pioneer South Korea's plastics industry in 1952.

Founding Vision

Koo In-hwoi established the company with a clear vision for diversification. This foresight guided its early growth and expansion into new industries.

Pioneering Industries

The company was the first in South Korea to enter the plastics industry in 1952. This marked a significant step in the nation's industrial development.

Expansion into Electronics

In 1958, GoldStar Co. Ltd. was founded, producing South Korea's first radio. This expansion laid the groundwork for what would become a major electronics manufacturer.

Merger and Rebranding

The entities Lucky and GoldStar merged in 1983 to form Lucky-Goldstar. This name was later rebranded to LG in 1995, signifying a new era.

Family Control

The Koo family has maintained significant control since the company's inception. Leadership has traditionally been passed down through generations of the family.

Succession Tradition

The family's tradition of male-only succession has been a key factor in its ownership structure. This has ensured continuity in leadership and control.

The Koo family's enduring influence on LG Corporation is a defining characteristic of its history. Koo In-hwoi led the company until his passing in 1969, with his son, Koo Cha-kyung, assuming leadership. The reins were then passed to Koo Cha-kyung's son, Koo Bon-moo, in 1995, continuing a lineage of family management. While precise initial equity structures are not publicly detailed, the consistent family leadership highlights their foundational and ongoing ownership stake, a key aspect of understanding who owns LG.

Early Ownership and Leadership

LG Corporation's ownership has been deeply rooted in the founding family since its establishment in 1947. This familial control has shaped its leadership transitions and strategic direction over the decades.

• Founded by Koo In-hwoi in 1947.
• Initial venture: Lak Hui Chemical Industrial Corp.
• Expansion into plastics in 1952.
• Establishment of GoldStar Co. Ltd. in 1958.
• Rebranded from Lucky-Goldstar to LG in 1995.
• Leadership succession within the Koo family.

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LG Corp.'s ownership structure has evolved since its listing on the Korea Stock Exchange in February 1970, with significant influence held by its founding family and a growing presence of institutional investors.

The Koo family remains the dominant force in LG Corp.'s ownership, with the CEO, Koo Kwang-mo, being the largest individual shareholder. This substantial family stake underscores a long-standing commitment to the company's direction. Institutional investors, such as Silchester International Investors LLP and the National Pension Service, also represent significant ownership blocks, indicating confidence from financial analysts. The general public, comprising individual investors, holds a notable portion of the shares, contributing to the overall shareholder influence.

Key Stakeholders and Financial Performance

LG Corp.'s ownership is a blend of family control and institutional investment, reflecting its status as a major South Korean conglomerate. The company's financial health, as seen in its subsidiaries' performance, likely influences stakeholder decisions.

• LG Corp. consolidated revenue in 2024 was KRW 7.18 trillion.
• LG Corp. operating profit in 2024 reached KRW 0.97 trillion.
• LG Electronics, a key subsidiary, achieved a record KRW 87.73 trillion in consolidated revenue for 2024.
• LG Electronics reported an operating profit of KRW 3.42 trillion in 2024.
• The company's strategic focus includes AI, Bio, and Clean Tech, aligning with Marketing Strategy of LG.

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The Board of Directors for LG Corp. is instrumental in guiding the company's strategic path and overseeing its operations. As of May 2025, key leadership positions are held by Koo Kwang-mo, who serves as Chairman of the Board and CEO, alongside Bong Seok Kwon as Vice Chairman and Beom Jong Ha as President and CFO. The board also includes independent directors, such as Sung Wook Cho, Soo Young Lee, Jong Su Park, and Do Jin Jung, ensuring a balance between family representation and independent oversight.

LG Corp. generally adheres to a voting structure where common stocks carry one vote per share. Preferred stocks, while entitled to an additional 1% cash dividend, typically do not have voting rights unless dividends are not paid, at which point voting rights are granted for a defined period. This framework reinforces the voting power of common shareholders, particularly the controlling Koo family. In specific instances, such as the election of an Audit Committee member who is an outside director, shareholders holding more than 3% of the total voting shares are restricted from exercising voting rights on shares exceeding this threshold, a measure designed to mitigate undue influence from large shareholders on independent oversight appointments.

Governance and Succession Dynamics

Recent events have brought to light the complexities of family ownership and succession within LG Group. An inheritance dispute involving Chairman Koo Kwang-mo, his mother, and sisters concerning a stake inherited from the late Chairman Koo Bon-moo has highlighted potential governance challenges. This dispute, the first of its kind in the company's 75-year history, underscores the ongoing need to balance traditional family succession practices with contemporary corporate governance expectations.

• The dispute involves an 11.28% inherited stake.
• It is the first such legal challenge in LG's history.
• The situation emphasizes the importance of succession planning.
• It reflects the interplay between family control and corporate governance.

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Over the past few years, LG Corp. has actively worked to boost shareholder value and pursue strategic growth. Recent initiatives include significant share cancellations and the planned introduction of semiannual dividends, signaling a stronger commitment to its investors and the overall LG company ownership structure.

LG Corp. is strategically investing in future growth areas such as artificial intelligence, biotechnology, and clean technologies to enhance its profitability. This focus on innovation, alongside efforts to improve shareholder returns, reflects a dynamic approach to its corporate structure and ownership trends.

India IPO Plans

LG Electronics India plans an IPO by mid-April 2025. This offering aims to be India's largest for the year, raising approximately 15,000 crores (around $1.5 billion).

Shareholder Return Focus

The company is implementing a semiannual dividend payment program starting in 2025. This move underscores a commitment to increasing shareholder value and reflects evolving ownership expectations.

Strategic Investment Areas

LG Corp. is concentrating investments on artificial intelligence, biotechnology, and clean technologies. These areas are identified as key drivers for future profitability and growth.

Institutional Ownership Trends

Major firms like Silchester International Investors LLP and the National Pension Service continue to hold significant stakes. This highlights the importance of institutional investors in the Competitors Landscape of LG and its overall ownership profile.

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