A recent court decision in South Korea has concluded a significant inheritance dispute within the prominent LG Group. The ruling validates Chairman Koo Kwang-mo's claim to the inherited assets, effectively upholding his current control over the conglomerate. This outcome removes immediate uncertainty regarding the group's leadership structure and was accompanied by a directive for the plaintiffs to cover all legal expenses.
The case involved claims brought forth by Koo Kwang-mo's adoptive mother and sisters, who sought a redistribution of the late chairman's assets. Their argument centered on statutory inheritance laws, which dictate asset division based on familial relationships. However, the court ultimately accepted Koo Kwang-mo's defense, which relied on evidence of a family agreement and testimony suggesting the late chairman’s explicit designation of him as successor.
Background of the Inheritance Claims
The legal challenge stemmed from the division of assets left by the late LG Chairman, estimated to be worth 2 trillion won (approximately $1.38 billion USD). These assets included a substantial shareholding in LG Corp., the group's holding company.
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The late chairman's estate comprised various holdings, including 11.28 percent of LG Corp. stock.
Koo Kwang-mo initially inherited 8.76 percent of LG Corp. shares.
The plaintiffs, identified as the late chairman's first and second daughters and his widow, argued for a division based on legal ratios. These ratios typically favor spouses and children at a 1.5-to-1 distribution.
Specifically, the plaintiffs demanded allocations of 0.51 percent for the first daughter and 0.51 percent for the second daughter, along with other personal assets like real estate and artwork.
Koo Kwang-mo's legal team countered these claims by presenting evidence of a pre-existing family agreement. This agreement, supported by testimonies from group officials, allegedly indicated the late chairman’s intent to designate Koo Kwang-mo as his sole successor for management-related assets.
Evidence Presented in Court
Central to the court's decision was the assessment of conflicting evidence regarding the late chairman's wishes and familial agreements.
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Plaintiffs' Position: The adoptive mother and sisters asserted their right to a portion of the inheritance based on legal statutes governing asset distribution among family members. Their demand implied a recalculation of the existing distribution to reflect these statutory ratios.
Koo Kwang-mo's Defense: Evidence presented by Koo Kwang-mo's side included:
Testimony from Park Jangsoo, Chief Financial Officer of LX Pantos, and an LG Group financial management employee. These witnesses stated that Madam Kim Youngsik (the adoptive mother) and Koo Yeonkyung (CEO of the LG Welfare Foundation, the first daughter) had agreed to the current asset division.
This agreement was framed as a transfer of management assets specifically to Koo Kwang-mo.
Witnesses testified that the late chairman had personally selected Koo Kwang-mo as his successor and intended for him to receive all management assets.
The court's acceptance of Koo Kwang-mo's arguments suggests that the evidence of the family agreement and the late chairman's expressed intent carried significant weight.
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Court's Ruling and its Implications
The Seoul Western District Court's verdict dismissed the plaintiffs' claims, thereby affirming the existing inheritance arrangement.
The ruling legitimized Koo Kwang-mo's inheritance and his subsequent control over LG Corp. shares.
Had the court ruled in favor of the plaintiffs, a redistribution of shares could have diluted Koo Kwang-mo's equity stake, potentially jeopardizing his management authority.
The decision concludes the immediate legal challenge, providing stability for the group's governance.
The plaintiffs were ordered to bear all litigation costs, a common outcome when a lawsuit is dismissed.
Expert and Witness Testimony
Key individuals provided testimony that informed the court's proceedings.
Park Jangsoo and an LG Group financial management employee testified as witnesses. Their statements affirmed that the late chairman's wife and eldest daughter had acknowledged the inheritance division. They stated that this division involved transferring management assets to Koo Kwang-mo.
Witnesses referred to the late chairman's specific actions in handpicking Koo Kwang-mo as his successor.
The concept of "management assets" was clarified to include shares in LG Corporation and its affiliated companies crucial for the group's operations, along with associated dividends.
Contrasting Views on Succession
The legal battle highlighted differing interpretations of inheritance and succession within the Koo family.
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| Aspect | Plaintiffs' Claim (Adoptive Mother & Sisters) | Koo Kwang-mo's Defense |
|---|---|---|
| Basis of Claim | Statutory inheritance laws, requiring a 1.5-to-1 ratio for spouse/children. | A specific family agreement and the late chairman's designated succession plan. |
| Intended Outcome | Redistribution of assets, including a larger share of LG Corp. stock. | Affirmation of the existing distribution favoring Koo Kwang-mo for management control. |
| Witness Support | Implied by their legal arguments seeking statutory division. | Direct testimony from Park Jangsoo and finance team members regarding family agreement. |
| Focus of Inheritance | A broader claim for familial shares. | Emphasizing the transfer of management assets and leadership succession. |
Conclusion and Next Steps
The Seoul Western District Court's ruling in favor of Chairman Koo Kwang-mo has decisively settled the inheritance dispute. This verdict confirms the validity of the inheritance agreement and strengthens Koo Kwang-mo's position as the leader of LG Group.
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The immediate effect is the stabilization of the group's governance structure, removing the uncertainty that surrounded the leadership.
The court's acceptance of the family agreement over statutory claims sets a precedent for how such disputes are adjudicated when clear intent is demonstrable.
With the litigation concluded, the focus is expected to shift back to the group's business operations and strategic direction under Koo Kwang-mo's continued leadership.
The plaintiffs' obligation to cover litigation costs underscores the legal outcome of their unsuccessful claim.
Sources:
Context: Reports the court's decision and its impact on Chairman Koo Kwang-mo's control and the group's governance.
The Korea Herald: https://www.koreaherald.com/article/10675972
Context: Details the court's acceptance of Koo Kwang-mo's argument based on a family agreement and dismissal of the plaintiffs' statutory claims.
Korea JoongAng Daily: https://koreajoongangdaily.joins.com/news/2026-02-12/business/industry/LG-Group-Chairman-Koo-Kwangmo-wins-family-inheritance-battle-against-his-mother-and-sisters-/2522655
Context: Covers the court ruling against the plaintiffs and confirms Koo Kwang-mo's victory in the inheritance battle.
Asia Business Daily (Invest&Law): https://cm.asiae.co.kr/en/article/2025120313252274276
Context: Discusses the proceedings, witness testimonies regarding family agreement, and the expected timeline for the verdict prior to a judicial reshuffle.
LA Times: https://www.laitimes.com/en/article/67j5s6nvgq.html
Context: Provides background on the family dispute, referencing the plaintiffs' initial desires and Koo Kwang-mo's plea.
