Korean lawmakers to study LG Group’s owner-management approach

[Photo by Han Joo-hyung]

A group of Korean lawmakers from the opposition Democratic Party of Korea is set to explore the LG Group’s owner-management strategies as the subject of their next seminar. In its previous seminar, the group studied the leadership of Samsung Group, with a focus on the late Chairman Lee Kun-hee.

According to political and business circles on Wednesday, the Democratic Party’s caucus for strengthening the international competitiveness of global companies plans to hold a seminar on LG Group’s owner-management. The date has not yet been scheduled.

The subgroup of the opposition party was formed by Representatives Kim Byung-wook, Song Ki-hun and Yoo Dong-soo. Their previous seminar, held last month under the title “Global Competition in Semiconductors and the Role of Samsung’s Owner Management,” garnered unusually large attention from political and industry circles.

During the seminar, they discussed the success story of the global chipmaker, highlighting the group’s swift decision-making capabilities facilitated by their owner-management structure. The seminar gained significant attention particularly because it was organized by the opposition party, which is known for its critical stance towards businesses.

The upcoming seminar on LG Group’s owner-management is expected to cover the group’s late Chairman Koo Bon-moo’s decision to invest in the battery business and the incumbent Chairman Koo Kwang-mo’s steering of the group’s businesses.

Late Chairman Koo Bon-moo is known for recognizing the potential of the battery industry early on. LG Chem Ltd. was the first Korean company to mass-produce lithium-ion batteries in 1998. Despite facing losses for an extended period of time, the company continued investment in the business on the back of the strong support from the owner-management structure.

As a result, the company’s battery business now has gained momentum with the onset of the electric vehicle era. Last year, LG Energy Solutions Ltd. ranked second in the EV battery global market share, and first in market excluding China.