LS Group speeds up the succession of Chairman Koo Ja-eun

Input 2021.02.19 17:02 | Revision 2021.02.19 17:13

Ja-yeol Koo LS(006260)The management succession is expected to accelerate as the group chairman is elected as the chairman of the Korea International Trade Association. It is expected that Koo Ja-eun, chairman of LS Mtron and chairman of LS Group’s Future Innovation Group, will become the next group chairman.

According to the business community on the 19th, Chairman Koo Ja-eun is expected to become chairman of LS, a holding company, as early as this year. The current chairman Koo Ja-yeol was elected as the next chairman of the trade association, but the chairman of the trade association is close to full-time, so it is difficult to take over with the group management. Accordingly, some estimates that management succession will speed up.

Apart from the position of Chairman of the Trade Association, Chairman Koo Ja-eun’s management succession was already underway. Chairman Koo Ja-eun has also served as the internal director of LS since 2018. Since then, he has also served as the head of the LS Future Innovation Group, taking charge of the group’s future food discovery and digital transformation. It is also the largest shareholder with a 3.63% stake in LS Co., Ltd. as of last month.

LS Group has handed over management rights to cousins ​​every 10 years. The replacement period according to this precedent is also nearing. Founded in 2003, LS Group, the eldest son of the late founder Koo Tae-hoe, chairman of LS Nikko Copper, chairman of LS Nikko Copper, took over as chairman of LS Co., Ltd. for nine years from 2004 to 2013. Chairman Koo Ja-yeol, the eldest son of the late E1 Honorary Chairman Koo Pyeong-hoe, has taken over the position of LS Co., Ltd. since 2013 and has been leading the group.

In the business world, Chairman Koo Ja-yeol is also expecting to hand over management rights to his cousin Ja-eun Koo, as this is the 9th year. When Chairman Koo Ja-eun becomes the chairman of LS Co., Ltd., he is expected to become the last runner of the second generation.

The 3rd generation owners are also speeding up their succession by taking the lead in management. Koo Bon-hyuk, president of Yesco Holdings and Koo Bon-kyu, vice president of LS Mtron, were appointed CEOs of each company in November last year. E1 Chief Operating Officer (COO) Dong-Hwi Koo is also scheduled to be appointed as an executive director at the general shareholders’ meeting of LS Networks held next month.

However, it is a burden that the courts on the allegation of’driving work’ are in full swing. The prosecution reported that the owners of the LS Group had been accused of unfair support for 14 years after the establishment of the subsidiary LS Global, and for about 14 years, Jahong Koo, Jayeop Koo, Chairman of LS Cable & System, and Jaeun Koo were disregarded. Prosecuted. The first trial will be held at the Seoul Central District Court on the 5th of next month after the trial preparation period is over.

Following this, in April, the 7th pleadings will be held in the lawsuit for canceling the order to pay the penalty surcharges filed by LS Corporation. In June 2018, the Fair Trade Commission imposed a correction order and a penalty of KRW 26 billion on LS Group affiliates on charges of violating the Fair Trade Act, and accused the owner’s family to the prosecution.