SEOUL (Reuters) – South Korea’s LG Corp said on Thursday it would spin off five affiliates into a new holding company next year, the latest reorganisation at one of South Korea’s family-led conglomerates as they pass to a new generation of leaders.
Analysts expect the new holding firm, to be headed by Koo Bon-joon, a son of LG’s founder, will eventually be separated from LG Corp.
LG Corp is led by Koo Bon-joon’s nephew Koo Kwang-mo, who took over as LG Group chairman in 2018 after his father died.
Around the turn of the century, LG Group and other South Korean conglomerates broke up into several companies led by children of the groups’ founders. Now the conglomerates are passing to the grandchildren of those founders, leading to a further round of restructuring deals.Reuters News