Samsung Electronics Chairman Lee Jae-yong (R) and LG Group Chairman Koo Kwang-mo (2-R) take an elevator after a South Korea-US business roundtable on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit at Gyeongju Arts Center in Gyeongju, about 275 kilometers southeast of Seoul, South Korea, 29 October 2025. File. Photo by YONHAP / EPA
LG Group Chairman Koo Kwang-mo won a first-instance court ruling Thursday in a family inheritance dispute, easing legal uncertainty surrounding control of the conglomerate.
The Seoul Western District Court dismissed a lawsuit filed by family members seeking restoration of inheritance related to the estate of the late former Chairman Koo Bon-moo.
The court ruled that a 2018 inheritance division agreement was concluded through lawful procedures and sufficiently reflected the plaintiffs’ intent. It also found no grounds to invalidate the agreement based on a disputed memo, saying there was insufficient evidence of fraud.
With the ruling, Koo’s status as the largest shareholder of LG Corp., the group’s holding company, was reaffirmed. As of the 2025 interim report, Koo holds a 15.96% stake, and the combined stake of the largest shareholder and related parties totals 41.72%, a level widely viewed as sufficient to defend management control.
LG Corp. controls key affiliates including LG Electronics, LG Chem, LG Uplus, LG CNS, LG Household & Health Care and HS Ad through majority or leading stakes.
The dispute had drawn attention in the business community because a ruling in favor of the plaintiffs could have led to a redistribution of shares and potentially altered control of the group. With the first-instance decision, Koo’s leadership and the group’s holding company-centered governance structure remain intact for now.
Industry observers said the decision could allow Koo to focus more fully on long-term strategy. LG has emphasized professional management across affiliates, but analysts expect the chairman’s role to become more visible in global partnerships and future planning.
Stabilized control is also expected to support LG’s “ABC” growth strategy – artificial intelligence, bio and cleantech. LG Electronics recently established a dedicated organization for actuators, key components used in robotics and mobility systems, signaling a push to strengthen core technologies.
The plaintiffs retain the option to appeal, meaning the legal dispute is not fully resolved. Koo’s legal team said the ruling confirmed the legality and procedural validity of the inheritance agreement and expressed confidence that it would remain valid in subsequent proceedings.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260213010004831
