SEOUL (Reuters) - South Korea’s LG Corp on Thursday said its longtime chairman is unwell and that it plans to nominate his son to its board of directors in preparation for leadership succession.
The holding company of electronics-to-chemicals conglomerate LG Group said in a statement the boardroom contribution of Koo Bon-moo, 73, was now limited and that it would ask shareholders to vote on the appointment of Koo Kwang-mo, 40, at a meeting next month.
It did not elaborate on the condition of the elder Koo, who has been chairman since 1995. A spokesperson for the firm could not be reached for comment.
Heir apparent Koo is from the fourth generation of the controlling family of South Korea’s fourth-largest conglomerate, or chaebol. He owns 6 percent of LG Corp and was lately working as a senior official at LG Electronics Inc.
LG is not the country’s only family-run conglomerate planning generational succession.
Hyundai Motor Group this month proposed a restructuring plan in preparation for a father-to-son handover. Proxy advisors rejected the plan, saying it would benefit members of the conglomerate’s controlling family but not minority shareholders. [nL3N1SL71E]
Samsung Electronics Co Ltd, the flagship unit of Samsung Group, named heir Jay Y. Lee as director in 2016 after his father, the firm’s chairman, suffered a heart attack.
Lee was arrested last year on bribery and embezzlement charges. He has denied charges and was released from jail in February after a court suspended his sentence. [nL3N1SH21G]
The families controlling chaebols have been the subject of public anger this year after allegations of bad behavior among members of the family controlling Korean Air Lines Co Ltd. [nL3N1SH3NK]
Reporting by Heekyong YangEditing by Christopher Cushing