Family Split at LG, a South Korean Giant, Tests Corporate Succession

An ongoing lawsuit has pitted a family against each other, challenging the patriarchal traditions of a $10 billion conglomerate. The Koo family, owners of the South Korean company LG, are embroiled in a fight over the inheritance of the late chairman Koo Bon-moo’s estimated $1.5 billion fortune and 11 percent stake in the company. 

Koo Bon-moo died without a will, leading to a dispute between his widow and two daughters against the adopted son, Koo Kwang-mo, who became the successor based on the principle of male primogeniture. The family accuses Koo Kwang-mo and other LG executives of deception to secure their rightful inheritance and reinforce his claim to the company. 

The legal battle challenges LG’s patriarchal tradition and highlights the complexities of succession in South Korea’s chaebols, influential family-run conglomerates dominating the nation’s economy. The lawsuit includes transcripts of secretly recorded conversations where Koo Kwang-mo urges his adopted mother not to contest the inheritance for fear of damaging LG’s image and his leadership reputation. The women also accuse an LG executive of misleading them about the existence of a will favoring Koo Kwang-mo.

For more information see Daisuke Wakabayashi and Victoria Kim “Family Split at LG, a South Korean Giant, Tests Corporate Succession”, The New York Times, December 18, 2023.

Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention.