LG Family Inheritance Dispute 2nd Hearing Transcript Released... Three Daughters' Side "Agreement Must Be Reset Regardless of Former Chairman Yoo Ji"

At the second hearing of the inheritance dispute lawsuit filed by the three women of the LG family against Koo Kwang-mo, chairman of LG Group, a recording was revealed in which Koo Yeon-kyung, the eldest daughter of the late former chairman Koo Bon-moo and CEO of the LG Welfare Foundation, stated that "regardless of the late chairman Koo's will, the division agreement must be reset." While the three women claimed they had been deceived into believing a will existed, the circumstances suggest that they actually reversed the inheritance agreement.

[Image source=Yonhap News]

On the 16th, the 11th Civil Division of the Seoul Western District Court (Presiding Judge Park Tae-il) held the second hearing of the inheritance recovery lawsuit filed by the late chairman Koo’s wife Kim Young-sik, Koo chairman’s younger sister Koo Yeon-kyung, and Koo Yeon-su against Chairman Koo. Following the first hearing, LG President Ha Beom-jong again appeared as a witness for the plaintiffs. President Ha previously served as head of the Finance Management Team at LG Corporation in 2013 and managed the assets of the LG owner family and the late chairman Koo.

During the trial, a recording of a family conversation from last year, when the three women raised objections to the inheritance division, was disclosed. According to the recording, CEO Koo Yeon-kyung told Chairman Koo, "Regardless of the will, the division agreement must be reset." Additionally, Ms. Kim said, "I said I would definitely give the shares," and "CEO Koo Yeon-kyung can manage well. I want to receive the shares again to participate in management rights." Previously, the three women stated when filing the lawsuit that they had agreed to the inheritance terms under the mistaken belief that a will existed and that the lawsuit was not intended for a management rights dispute.

When Chairman Koo’s side asked President Ha, "Is it true that CEO Koo Yeon-kyung said, ‘Regardless of the late chairman Koo’s will, the division agreement must be reset’?" President Ha confirmed that such a conversation took place. It is known that Koo Yeon-kyung’s husband, Yoon Kwan, CEO of BlueRun Ventures, was also present during the family discussion.

The three women claimed that the 1.12% stake in LG CNS inherited by Chairman Koo should be considered personal property. They said, "When asked whether LG CNS shares are included in management assets, the witness evaded the question," and added, "LG CNS is not publicly listed and there is no possibility of a management rights dispute, so is there any basis to hold it as management assets?" In response, President Ha said, "The LG CNS shares inherited by Chairman Koo are management assets. I never evaded the question," and "They have been separately managed as management assets since the past." When asked if all LG assets should be considered management assets, President Ha replied, "Yes."

The three women also raised issues again regarding the disposal of documents containing the late chairman Koo’s will. Chairman Koo’s side claims that the late chairman left a memo indicating his intention to transfer management assets to Chairman Koo. This memo has since been discarded. The three women said, "It is not reasonable to accept that the most important document was discarded." When Chairman Koo’s side asked, "Is it true that not only this memo but all documents in the name of the deceased are discarded?" President Ha answered, "Yes."

After the witness examination, the judge proposed mediation to both parties. The representatives of the three women responded, "We will try to persuade the plaintiffs." The representatives of Chairman Koo said, "The three women unilaterally filed the lawsuit after over a year of negotiations. We will ask Chairman Koo’s opinion, but since all evidence has been reviewed and witness examinations conducted, the case should be concluded by the court to get closer to the truth." The court decided to hold a preparatory hearing on the 19th of next month before the witness examination of former LG Management Development Institute Vice Chairman Kang Yoo-sik.

Earlier, Ms. Kim and her two daughters filed the inheritance recovery lawsuit against Chairman Koo on February 28, demanding a redivision of the inherited assets. Chairman Koo inherited 8.76% of LG shares out of the 11.28% held by the late chairman Koo, who passed away in May 2018. CEO Koo Yeon-kyung and Koo Yeon-su each received 2.01% and 0.51% of LG shares, respectively, along with the late chairman’s personal assets.

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