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LX Holdings logo (Yonhap) |
LG Corp., the holding firm of South Korea’s fourth-largest conglomerate by assets LG Group, received approval from shareholders on Friday to set up another parent entity as part of the conglomerate spinoff plan.
Set for launch on May 1, LX Holdings will take four non-electronics affiliates with promising outlooks -- LG International, LG Hausys, LG MMA and Silicon Works under its umbrella. LG Corp. will keep electronics, chemicals and communications businesses and focus on future growth engines such as battery, auto parts and large OLEDs.
According to LG, 89.2 percent of shareholders participated in the shareholders meeting held in Seoul, and 76.6 percent of them voted yes to the establishment of LX Holdings.
Last November, LG decided to carve out some affiliates to Koo Bon-joon, uncle of current LG Group Chairman Koo Kwang-mo and younger brother of late LG Group chief Koo Bon-moo.
LG has a tradition of the eldest son of the group’s chief inheriting management. Brothers of the chief have to create their own business group with spin-off companies when the chief passes away. LS Group, LIG Group and Heesung Group are examples of this tradition.
Meanwhile, the forthcoming LX Holdings is already facing a legal battle over its name, as the Korea Land and Geospatial Informatix, which uses LX in its English name, plans to sue LG over use of the name.
By Kim Byung-wook (
kbw@heraldcorp.com)
