Speculations are looming that LG Group, South Korea’s third largest conglomerate based on market cap, is preparing to hand down the leadership to Koo Kwang-mo, executive vice president of the group’s holding entity LG Corp. and also the grandson of LG Group’s late founder Koo In-hwoi, from current Chairman Koo Bon-moo.
LG said in a regulatory filing on Friday that Lee Sun-yong, chief executive of Beartree Park and the maternal grandson of the group’s late founder, has sold his entire 177,401 LG shares, worth nearly 15.1 billion won ($13.1 million) based on Sept 15 closing price, from September 15 to 27.
The company also disclosed that Koo Ja-young, third daughter of the late founder, sold off her 50,500 shares in LG between September 15 and 21 and she now owns only 682,531 shares, or a 0.39 percent stake, in the holding company.
Earlier on September 8, LG said that the late founder’s three other grandchildren have sold off their entire 891,427 shares, or a 0.51 percent stake, in LG.
The latest LG stock selloff by cousins and relatives of Koo Kwang-mo is buttressing market’s speculation that LG Group is in a move to shift the group leadership to Koo Kwang-mo who holds the third-largest stake of 6.24 percent in LG from LG Group Chairman and his adoptive father Koo Bon-moo who owns 11.28 percent. LG Group Vice Chairman Koo Bon-joon and his biological father Koo Bon-neung, chairman of Heesung Group, have 7.72 percent and 3.45 percent stakes, respectively, in LG.
Market watchers interpreted that the LG Group’s owner family members are selling their shares to ready Koo Kwang-mo as the next head of the family corporate empire, but an LG official said that the family members sold their shares for personal reasons and denied any relations to the corporate affair.
By Chung Seung-hwan
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]