LG Leader Alternates New Headquarters To Face $900 Million In Heritage Taxes

- Jun 01, 2018-

South Korea has a large number of world-famous family-owned financial corporations. The internal disputes and inheritance of these multinational corporations have also become the focus of media attention. According to the latest news from foreign media, the chairman of LG Group has recently passed away, the next generation will have control, and the company will also pay nearly 900 million U.S. dollars in inheritance tax for succession.

Recently, the chairman of the LG Group has died. It is reported that his 40-year-old adopted son Koo Kwang-mo will become the leader of the next generation of LG.

According to the Korea Times website, several years ago, LG changed its corporate structure to a holding company system, which has a simpler structure. This structure helps the company leaders to alternate.

"LG" is a controlling entity of the LG Business Empire. In this company, Benmao holds 11.28% of the shares and is the largest shareholder. His brother Koo Bon-joon holds a 7.72% stake. It is reported that his younger brother has become the actual controller of the LG Group in recent years.

Koo Kwang-mo, who will take over the leadership, holds a 6.24% stake in the holding company. In addition, he has just recently been appointed as a member of the company's board of directors, and in the eyes of the outside world, this is a rush of LG Group power alternation.

In 2017 and this year, he had undergone several surgeries and his health deteriorated lately. He was sent to Seoul National University Hospital. Therefore, Benmo has been unable to handle the management of the LG Group.

The author, who had said to his family, was reluctant to accept treatment that deliberately prolonged life.

An insider of the LG Group stated that if the equity of Benmao is reserved for adoptive children, then Koo Kwang-mo will become the largest shareholder and will firmly grasp the leadership of the LG business empire.

Alternate leaders of LG will also bring the cost of estate tax. According to Korea's inheritance tax law, the size of a deceased person's estate is calculated based on the monthly average from two months before death to death.

Informed sources said that taking into account the various assets such as stocks, the value of the assets of Benmao was 1.87 trillion won, equivalent to 1.7 billion U.S. dollars, because the inheritance of more than 3 billion won was subject to a 50% inheritance tax, so this succession People will alternately bring about $900 million in inheritance tax to Koo Kwang-mo, and even more.

Industry sources stated that since Koo Kwang-mo does not have such much cash in hand, he may choose to pay the estate tax in batches.