S.Korea's LG Group chairman dies from illness at 73 (updated)

LG Uplus

20/05/2018 13:04

* Koo Bon-moo led parent group of LG Electronics and LG Chem
    * LG's controlling family to hand over to fourth generation
    * Adopted son expected to succeed late chairman

 (Recasts, adds Samsung Group heir Jay Y. Lee)
    By Jane Chung and Ju-min Park
    SEOUL, May 20 (Reuters) - The chairman of LG Group, Koo
Bon-moo, who helped transform South Korea's fourth-largest
conglomerate into a global brand, passed away on Sunday after a
battle with a brain disease.
    Koo, 73, had been ill for a year, LG Group said in a
statement.
    Koo had been fighting a brain disease and had undergone
surgery, said a group official who declined to be identified.
    "Becoming the third chairman of LG at the age of 50 in 1995,
Koo established three key businesses - electronics, chemicals
and telecommunications - led a global company LG, and
contributed to driving (South Korea's) industrial
competitiveness and national economic development," LG said.
    LG Group also established a holding company in order to
streamline ownership structure and to begin the process of
succession.
    The country's powerful family-run conglomerates are
implementing generational succession amid growing calls from the
 government and public to improve transparency and corporate
governance.
    LG Corp  003550.KS , a holding company of the conglomerate,
had said on Thursday its longtime chairman was unwell and it
planned to nominate his son to its board of directors in
preparation for a leadership succession.  urn:newsml:reuters.com:*:nL3N1SO2HT
    
    HEIR APPARENT
    Heir apparent Koo Kwang-mo is from the fourth generation of
LG Group's controlling family. He owns 6 percent of LG Corp and
currently heads LG Electronics' information display unit. 
    He joined the finance division of LG Electronics in 2006 and
has been involved in several businesses such as appliances, home
entertainment and group strategy, LG said.
    The late chairman adopted Koo in 2004 from his younger
brother Koo Bon-neung after his only son died in a car accident.
    The change at the helm is not expected to be disruptive to
the group's business, one analyst told Reuters.
    "Although Koo passed away at a relatively early age, his son
has already been in a senior position and I don't think there
will be a big change in governance structure or strategic
decisions," said Park Ju-gun, head of corporate analysis firm
CEO Score.
    Under Koo's leadership, the conglomerate changed its
corporate brand to LG from Lucky Goldstar and sold LG's
semiconductor business to Hyundai, now SK Hynix Inc  000660.KS ,
under government-led restructuring in the wake of the Asia
financial crisis in the late 1990s. 
    Major affiliates are LG Electronics Inc  066570.KS , display
maker LG Display  034220.KS  and electric car battery maker LG
Chem  051910.KS .    
    South Korean prosecutors said this month they raided LG
Group's head office as part of a probe into alleged tax evasion
by family members controlling the conglomerate.  urn:newsml:reuters.com:*:nL3N1SG279
    The company said Koo's funeral would be held privately with
family members. Visitors including Samsung Group heir Jay Y. Lee
have paid their condolences at his altar.

 (Reporting by Jane Chung and Ju-min Park; Additional reporting
by Miyoung Kim and Jeongmin Kim; editing by Jacqueline Wong and
Jason Neely)
 ((jane.chung@thomsonreuters.com; +82 2 3704 5667; Reuters
Messaging: jane.chung.thomsonreuters.com@reuters.net))