Visualization of Koo Bon-joon's Independence, Prospects for LG Sangsa and Hausys Spin-off

Koo Bon-joon, LG Group Advisor

[Asia Economy Reporter Changhwan Lee] The plan for Bonjun Koo, an advisor at LG Group, to spin off LG International, LG Hausys, and others from LG Group to become independent is taking shape.

According to industry sources on the 16th, LG Corporation, the holding company of LG Group, is expected to hold a board meeting as early as this year to spin off LG International, Pantos, LG Hausys, and others.

LG Group stated that although the separation date has not been finalized, they are currently reviewing various possibilities from multiple angles.

The companies to be spun off will be taken over by Advisor Koo Bonjun. Advisor Koo is the younger brother of the late Koo Bon-moo, former chairman of LG Group. Since Chairman Koo passed away two years ago and his nephew Koo Kwang-mo took office as LG Group chairman, the possibility of Advisor Koo's spin-off has been steadily raised.

As LG Group has been gradually preparing for the spin-off since last year, there has been speculation that Advisor Koo's independence is highly likely.

Last year, LG International sold its stake in the Yeouido LG Twin Towers, which served as LG Group's headquarters, to LG Corporation and relocated to the LG Gwanghwamun Building. Also, special affiliates including Chairman Koo Kwang-mo sold all their 19.9% stake in Pantos, LG International's logistics subsidiary, at the end of 2018.

Advisor Koo holds a 7.72% stake in LG Corporation. It is expected that he will become independent by acquiring shares of LG International and LG Hausys using this stake, valued at about 1 trillion won.

LG Corporation holds 24.69% of LG International and 30% of LG Hausys. LG International owns 51% of Pantos. The combined sales of LG International, Pantos, and LG Hausys, which are subject to spin-off, account for slightly less than 10% of LG Group's total sales. It is analyzed that the spin-off will be completed by transferring some non-core affiliates to Advisor Koo while retaining the core electronics and chemical businesses.

An industry insider said, "The speculation about Advisor Koo Bonjun's independence has been steadily raised for several years," adding, "Considering the company size, even if LG International or LG Hausys are spun off, the impact on the entire LG Group will not be significant."

This content was produced with the assistance of AI translation services.