LG will separate five businesses into one company
|LG Corp announced the decision to allocate five subsidiaries to a new holding company next year, which will be the last stage of the reorganization of one of the largest chaebol (family conglomerate) southern korea. |
Analysts expect that the new holding company, which will be headed by Bon-Joon Koo, the son of the LG founder, will eventually be separated from LG Corp. LG Corp itself is headed by Koo Kwang-mo, the nephew of Bong-Joon Koo, who took over as Chairman of LG Group in 2018 after his father's death.
Around the turn of the century, the LG Group and other South Korean conglomerates split into several companies headed by the children of their founders. Now the conglomerates are being passed on to the grandsons of these founders, leading to new company restructurings.
LG Corp said the spin-off of subsidiaries will allow it to focus on its existing core businesses, such as electronics, chemicals and telecommunications services.
According to documents filed with regulatory authorities, the companies that will be separated in may 2021 into a separate holding structure include the trading company LG International Corp, the manufacturer of interior parts for housing and cars LG Hausys Ltd, the manufacturer of display chips Silicon Works Co Ltd and the manufacturer of chemicals LG MMA Corp, whose shares are not listed on the stock exchange.
The new holding company is expected to be listed on the stock exchange at the end of may 2021, with assets totaling 900 billion won ($812.5 million).
|Views: 14 ||
|Total comments: 0|