Ourhome Normalization Stalled Again... Sibling Conflict That Began in 2016 Rekindled

Former Vice Chairman Koo Bon-sung and Vice Chairman Koo Ji-eun Sue
Ourhome States "No Cases of Exceeding Director Compensation Limits"
Former Vice Chairman Koo is Largest Shareholder... Conflict Remains

The 'sibling conflict' within Ourhome, a comprehensive food company under the 범 LG group, which has continued since 2016 over management rights, appears to be reigniting. The eldest son, former Vice Chairman Gu Bonseong, who was indicted last year on charges of embezzling a large sum of company funds, has now filed a lawsuit against his younger sister, Vice President Gu Jieun, on charges of breach of fiduciary duty. Gu's side immediately denied the allegations, stating that they are "not true," but it seems difficult to avoid disputes for the time being.

Former Ourhome Vice Chairman Koo Bon-sung (left) and Vice Chairman Koo Ji-eun

Former Vice Chairman Gu Bonseong: "Caused Company Loss by Receiving Large Director Compensation" VS Vice President Gu Jieun: "Not True"

According to industry sources on the 9th, former Vice Chairman Gu, the largest shareholder of Ourhome, filed a lawsuit against Vice President Gu Jieun on charges of breach of fiduciary duty the day before. Gu claimed, "CEO Gu Jieun and inside director Gu Myeongjin knew that the 2023 Ourhome shareholders' meeting resolution approving the director compensation limit was illegal, yet they received a large amount of director compensation through this, causing damage to the company."

In a stock company, director compensation must be determined by a shareholders' meeting resolution, and directors who are shareholders with special interests cannot exercise voting rights.

Gu's side pointed out, "At the 2023 shareholders' meeting, it was noted on-site that shareholders with special interests were restricted from exercising voting rights, but CEO Gu Jieun ignored this and passed the agenda to set the director compensation limit at 15 billion KRW without any voting restrictions."

He added, "Former Vice Chairman Gu was sued by the company over director compensation because he received compensation exceeding the limit," emphasizing, "The current management has not exceeded either the total compensation limit or the individual compensation limits set by the board regulations."

In response, Vice President Gu's side immediately denied the claims. Ourhome issued a statement on the 9th saying, "Since the company's founding, resolutions setting the total compensation limit for all directors have been made under the view that directors who are shareholders do not fall under special interests. This was also applied during former Vice Chairman Gu's tenure."

They also raised doubts about the background of Gu's announcement of the lawsuit through a press release. Ourhome stated, "The press release was distributed even though the complaint had not been officially received by the company," adding, "It is interpreted that amid ongoing trials for Gu's embezzlement and breach of fiduciary duty charges, he is taking measures such as filing lawsuits and distributing press releases."

Exterior view of Ourhome Magok Food Research Center

Management Dispute That Began in 2016... The Spark Still Alive

Currently, the largest shareholder of Ourhome is former Vice Chairman Gu with 38.6%. The third daughter, Vice President Gu Jieun, holds 20.67%, the eldest daughter Gu Mihyeon holds 19.28%, and the second daughter Gu Myeongjin holds 19.6%.

The sibling conflict at Ourhome dates back eight years to 2016. Among the four siblings, Vice President Gu was the only one to receive management training at Ourhome. However, the dispute began when former Vice Chairman Gu, following the principle of eldest son succession, joined management in 2016, bypassing Vice President Gu. In 2017, the eldest daughter Gu Mihyeon sided with her brother, and Vice President Gu was pushed to become CEO of subsidiary Calisco, which operates the pork cutlet specialty store 'Saboten' and others.

In 2019, conflict arose over the appointment of former Vice Chairman Gu's son, Gu Jaemo, as an inside director of Ourhome. At that time, Ourhome pressured CEO Gu Jieun by stopping Calisco's food material supply, and Calisco changed its suppliers to competitor Shinsegae Food.

The management dispute, which had been leaning toward former Vice Chairman Gu's victory, took a turn in 2020 when he caused controversy over a retaliatory driving charge. In 2021, after Gu received a six-month prison sentence with a two-year probation in the first trial, the three sisters, holding a combined 60% stake, passed a resolution at the June regular shareholders' meeting to dismiss their brother from the CEO position. Afterwards, former Vice Chairman Gu stepped down as CEO.

At that time, former Vice Chairman Gu said he would sell his shares and withdraw from frontline management, but there has been no significant movement. Rather, in 2022, he attempted to oust Vice President Gu by holding an extraordinary shareholders' meeting with agendas to dismiss and appoint directors and auditors. The attempt failed.

An industry insider said, "Since Vice President Gu's appointment, Ourhome has been normalizing, which likely increased the sense of crisis on former Vice Chairman Gu's side," adding, "Nevertheless, as former Vice Chairman Gu still holds nearly 40% of the shares as the largest shareholder, there is always a possibility of sibling conflicts arising."

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