Chairman of LG Group dies from illness at 73

SEOUL: 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, a holding company of the conglomerate, had said that its longtime chairman was unwell and it planned to nominate his son to its board of directors in preparation for a leadership succession.

Heir apparent Koo Kwang-mo is from the fourth generation of LG Group’s controlling family. He owns 6% of LG Corp and currently heads LG Electronics Inc’s 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.

“There seems almost no risk in LG’s succession plan as the group appointed a successor early and the Koo family has the largest stake in the holding company,” said Park Ju-gun, head of corporate analysis firm CEO Score.

“LG’s heir is likely to take the role of a board chairman and let professional management executives lead the businesses.”

Under Koo’s l eadership, the conglomerate changed its corporate brand to LG from Lucky Goldstar and sold LG’s semiconductor business to Hyundai Electronics, now SK Hynix Inc, under government-led restructuring in the wake of the Asia financial crisis in the late 1990s.

Major affiliates are LG Electronics, display maker LG Display Co Ltd and electric car battery maker LG Chem Ltd.

Koo is survived by his wife, adopted son Kwang-mo and two daughters.

LG said Koo’s funeral would be held privately with family members.