Who Owns LG Company?

LG Bundle

Get Full Bundle:

	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

Who Owns LG Corporation?

Understanding the ownership of a major conglomerate like LG Corporation is key to grasping its strategic direction and market influence. The family's deep-rooted control has been a consistent theme, recently amplified by inheritance discussions.

Founded in 1947, the company has grown into a global powerhouse with subsidiaries in electronics, chemicals, and telecommunications. Its robust market position, with LG Electronics achieving a record KRW 87.73 trillion in consolidated revenue for 2024, highlights the importance of its ownership structure.

The evolution of LG's ownership, from its founding family's initial stakes to the influence of institutional and public shareholders, has shaped its governance and trajectory. This includes understanding how the company's diverse operations, such as those analyzed in an LG PESTEL Analysis, are managed under this structure.

The origins of the company trace back to 1947 with the establishment of Lak Hui Chemical Industrial Corp. by Koo In-hwoi. This initial venture, focused on cosmetic products, soon diversified into plastics and, by 1958, led to the founding of Goldstar, which would later become LG Electronics. The early ownership was firmly rooted within the Koo family.

Founding Year

The company's journey began in 1947, marking the start of a significant South Korean business legacy.

Initial Business Focus

The first enterprise was Lak Hui Chemical Industrial Corp., which produced Korea's first facial cream.

Expansion into Electronics

The establishment of Goldstar in 1958 was a pivotal moment, leading to the creation of what is now a major electronics manufacturer.

Family Partnership

A significant early alliance was formed with the Huh family, contributing to the company's growth and stability.

Family Separation

In 2005, the Huh family's interests were amicably separated, leading to the formation of the GS Group.

Enduring Family Control

The Koo family's continuous management and leadership succession highlight their foundational and ongoing influence on the company's direction.

The foundational ownership of the company was intrinsically linked to the Koo family, with Koo In-hwoi as the driving force behind its inception and early expansion. This family-centric approach to control and management has been a consistent theme throughout the company's history, even as it grew into a global entity. The early financial support from Huh Man-jung, a relative by marriage, established a strong business partnership that lasted for decades. This collaboration, characterized by harmony, eventually saw the Huh family's stake evolve into the separate GS Group in 2005. While precise initial shareholding details from the late 1940s are not publicly documented, the sustained generational leadership from the Koo family underscores their enduring majority ownership and control. This family-led structure has been integral to the company's Mission, Vision & Core Values of LG, emphasizing principles of societal contribution and harmonious growth.

Foundational Ownership Structure

The initial ownership was predominantly held by the founding Koo family, establishing a precedent for family-led governance.

• Koo In-hwoi initiated the business in 1947.
• Early financial backing was provided by the Huh family.
• Succession of leadership has remained within the Koo family generations.
• The company's structure reflects a strong family influence.

LG SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

LG Corp. has been a publicly traded entity on the Korea Stock Exchange since February 1970. A significant restructuring in March 2003 established LG Corp. as the primary holding company, adopting an American-style holding company system to enhance transparency and operational focus for its subsidiaries.

The Koo family, through its collective shareholding, maintains a controlling interest in LG Corp., influencing the company's strategic direction. This family ownership is complemented by significant stakes held by institutional investors, reflecting a blend of traditional family governance and modern investment practices. The evolution of LG's ownership structure highlights a commitment to transparency and a strategic approach to managing its diverse business portfolio, which includes understanding the Revenue Streams & Business Model of LG.

Key Stakeholders in LG Corp.

LG Corp.'s ownership is a mix of founding family control and substantial institutional investment. This structure ensures both long-term vision and professional management oversight.

• The Koo family holds a controlling stake, estimated at 45.9% in 2024.
• Chairman Koo Kwang-mo is the largest individual shareholder with 15.65% as of December 31, 2023.
• Major institutional investors include Silchester International Investors LLP (7.10%) and The National Pension Fund (6.87%) as of early 2025.
• LG Corp. itself is the primary shareholder in its key subsidiary, LG Electronics, holding 31.90% as of mid-2025.

LG PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

LG Corp.'s Board of Directors is composed of seven members as of July 2025, with a governance structure designed to ensure independent oversight. Four of these directors are independent, representing over 50% of the board, a composition aimed at strengthening corporate governance and accountability.

Voting power at LG Corp. primarily follows the 'one-share-one-vote' principle for common shares. Preferred shares generally do not carry voting rights unless specific conditions, such as missed dividend payments, are triggered. To foster greater shareholder engagement, an electronic voting system has been in place since March 2021. The 23rd annual general shareholders' meeting on March 25, 2025, saw an attendance rate exceeding 70%, indicating active participation. While the Koo family's significant shareholdings provide substantial influence, the emphasis on independent directors and transparent voting mechanisms underscores LG's commitment to modern corporate governance within its established framework.

Board Oversight and Shareholder Influence

LG Corp.'s board structure prioritizes independent voices to ensure robust governance. Shareholder participation is facilitated through electronic voting, enhancing transparency.

• 4 out of 7 board members are independent directors.
• Independent directors chair all committees except the Management Committee.
• Electronic voting system implemented since March 2021.
• Over 70% attendance at the March 2025 shareholders' meeting.

LG Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

Over the past few years, the ownership landscape of LG Corp. has been shaped by family succession dynamics and strategic business realignments. These shifts aim to fortify its market position and foster growth in emerging sectors.

Recent developments indicate a strategic pivot towards future growth areas, with a focus on AI, Bio, and Clean Tech as key pillars for its 'Future Vision 2030'. This proactive approach involves transforming its business portfolio to align with evolving market demands and technological advancements.

Family Succession Dynamics

In March 2023, a lawsuit concerning wealth redistribution was filed by the mother and sisters of the late Chairman Koo Bon-moo. Despite this, Koo Kwang-mo's shareholding in LG Corp. reached 15.95%, reinforcing his control.

Business Portfolio Transformation

LG Electronics is rebranding its companies with 'Solution' in their names, signaling a move towards becoming a 'Smart Life Solution provider'. This strategic shift is further supported by the expansion of new business models like subscription services.

Growth in Subscription Services

Subscription service revenue saw a significant increase of over 75% year-over-year in 2024, approaching KRW 2 trillion. The company aims to more than triple this revenue by 2030.

Increased Institutional Ownership

Global firms like Silchester International Investors and The Vanguard Group have increased their institutional ownership. This reflects growing confidence in LG's strategic direction and commitment to enhancing corporate value, as detailed in the Competitors Landscape of LG.

LG Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔