Secret Recordings, Hidden Shares and a Family Rift at South Korea’s LG
The New York Times • • world
Key Points:
- In June 2020, LG finance executives met with Kim Young-shik, widow of former LG chairman Koo Bon-moo, to review family finances and discuss the division of LG shares after Koo's death.
- The family’s 38 percent stake in LG is controlled by a small "shareholder group," with current chairman Koo Kwang-mo holding about two-thirds of that stake, roughly 26 percent, which is higher than the 16 percent reported in regulatory filings.
- The discrepancy suggests that some shares are held under other family members' names, potentially obscuring the true ownership structure and the value of Koo Kwang-mo’s holdings by about $1.6 billion.
- LG officials indicated that dispersed share ownership could allow family members like Ms. Kim to access funds without triggering tax scrutiny from South Korean authorities.
