LG Group, the South Korea second-largest conglomerate, ended a 57-year alliance of the founding Koo and Huh families with an amicable reorganization of the holding company.
A new entity GS Holdings took charge of the group's nine energy and distribution units, including LG-Caltex Oil Corp., LG Mart Co. Ltd. and LG Home Shopping, to become the nation's seventh-largest conglomerate with assets worth $13.8 billion. The new entity is named after the firm’s former trade name Gold Star. GS Holding will be under the control of descendents of Huh Joon-koo.
The Koo family will continue to control the original group holding company LG Corp., with its flagship manufacturing units LG Electronics Inc. and LG Chem Ltd. The leaner LG Holding Group will retain $40 billion in assets.
The voluntary reorganization followed a board decision in May to enhance specialization in each business sector and improve management efficiency. Analysts said corporate transparency will be strengthened.
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