With a multibillion dollar global fortune and a crucial share of LG Group at stake, the battle lines are drawn as the Koo Family of South Korea is engaged in a “Game of Thrones” style battle for their “old money” family empire.
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The $370 Billion Family That Can’t Stay Out of Jail: The Lees of Samsung:
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The $84 Billion Family That Can’t Stop Tragedy: The Chung Family of Hyundai:
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TIMESTAMPS:
0:00 Introduction
1:27 Chapter 1: The Kings of Koo
5:03 Chapter 2: The Cream of Luck
9:22 Chapter 3: Going Global
13:55 Chapter 4: The Succession Crisis and The Future
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By 2024, their collective fortune has been pegged at a jaw-dropping $5.5 billion. At the helm is Koo Kwang-mo, the current chairman and CEO of LG Corp, the holding company of LG Group.
He holds a 17.5% stake worth $3.2 billion. Under his watch, LG has pledged $74 billion over the next five years in cutting-edge tech like AI, biotech, and clean energy.
The Koos aren’t just tech tycoons; they’ve spread their investments across real estate, finance, and tech startups.
They’re a cornerstone of South Korea’s social and economic fabric, ranked as the fourth-largest family-operated business, or “chaebol,” in South Korea, employing over 70,000 people worldwide.
As of 2024, LG’s market valuation has hit 14 trillion won, roughly $10 billion, showcasing financial health that would make any bank blush.
The Koo family’s influence extends beyond top-tier positions, with family members and insiders strategically placed across LG’s subsidiaries and joint ventures.
Beyond business, their impressive real estate portfolio spans multiple regions, including prime properties in Victoria, Australia.
Their collection of high-end cars includes the Rolls-Royce La Rose Noire Droptail, valued at $30 million, and the Bugatti La Voiture Noire at $18.68 million.
The story of the Koo family begins with their twelfth-generation ancestor, Gu Seong-ro, during the Goryeo Dynasty.
The surname “Gu,” or “Koo,” has its origins in the Wu-speaking region of China.
The foundation of the Koo business empire begins with Koo In-hwoi, born on August 27, 1906, in Jinyang County.
Growing up as the eldest son in a Confucian family, Koo was nurtured in an environment emphasizing harmony and respect for elders, influencing his management philosophy at LG.
Koo In-hwoi founded Lak-Hui Chemical Industrial Corporation, known as Lucky, in 1947, focusing on cosmetics.
By 1952, Lucky ventured into the plastics industry, and in 1958, Koo established GoldStar, later LG Electronics.
GoldStar’s first major product, the A-501 radio, became a symbol of technological progress in Korea. Koo passed away in December 1969, but his son, Koo Cha-kyung, expanded LG to unprecedented heights.
Koo Cha-kyung, born in 1925, took LG public in 1970, providing the capital needed for expansion and innovation.
Under his leadership, LG Group’s revenue grew from 26 billion won to 30 trillion won.
Koo Bon-moo, taking over in 1995, rebranded the company to LG and focused on LCD displays, rechargeable batteries, and cutting-edge technologies.
By his death in 2018, LG’s annual sales had skyrocketed to 160 trillion won. Koo Bon-moo’s adoption of his nephew, Koo Kwang-mo, ensured the continuation of family leadership.
Koo Bon-moo’s passing in 2018 led to a power struggle over his $1.5 billion fortune and 11% stake in LG.
Koo Kwang-mo succeeded him as chairman, but Koo’s widow and two daughters are suing him, alleging deception to seize their rightful inheritance.
This lawsuit challenges the patriarchal tradition at LG. If the court accepts the lawsuit, Koo Kwang-mo’s shareholding in LG Corp could be significantly reduced.
Under Koo Kwang-mo, LG Group has undergone substantial restructuring, focusing on high-growth areas.
LG’s financial performance has been robust, with market capitalization nearly tripling and annual sales approaching $153 billion.
We’ll have to wait and see if the LG empire continues smoothly or faces an uncharted course in the future.