LG's Koo Kwang-mo, Divorce Petition 'Dismissed'…"To the End, We Will Find a Divorce Method"

[Dispatch=Reporter Kim So-jung] LG Group Chairman Koo Kwang-mo has won his case in an adoption dissolution lawsuit. His adoptive mother, Kim Young-sik, stated, "I will continue to find ways (for adoption dissolution) to the end."

Seoul Family Court, Division 6 (Judge Lee Eun-ju), held a first-instance ruling on the 3rd in the adoption dissolution lawsuit filed by Kim against Chairman Koo. The result was "dismissed." No specific reasons were given.

Upon hearing the ruling, Kim bowed her head down. Afterwards, meeting with reporters, she said, "I am sorry for causing concern regarding family matters," while adding, "Chairman Koo Kwang-mo and I cannot continue our relationship as mother and son."

She also expressed her intent to appeal. "I hope each of us will return to our own families and lives," she emphasized, "and until the relationship is resolved, I will find ways and do my best to the end."

According to Kim's legal representative, attorney Kim Su-jung of law firm Riwoo, this lawsuit was filed based on Article 905, Section 2 of the Civil Code. This applies to cases where adoptive parents receive severely unfair treatment from their adopted child.

Attorney Kim explained, "Considering the circumstances Kim experienced after the late former chairman passed away and the actual relationship between the two, I believe it would be appropriate for the mother-child relationship to be dissolved."

Chairman Koo Kwang-mo is the biological son of Koo Bon-neung, chairman of Heesung Group and the late former Chairman Koo Bon-moo's younger brother. Former Chairman Koo Bon-moo registered Chairman Koo Kwang-mo, his nephew, as an adopted child in 2004.

This followed LG's tradition of "succession by the eldest son." Former Chairman Koo Bon-moo and Kim Young-sik originally had one son and two daughters. However, their biological son, Koo Won-mo, passed away in an unexpected accident in 1994.

Former Chairman Koo Bon-moo passed away in 2018. Chairman Koo Kwang-mo received 8.76% of the 11.28% LG stake held by the deceased that year and assumed the chairmanship. He currently holds approximately 15% stake.

Eldest daughter Koo Yeon-gyung, CEO of the LG Welfare Foundation, inherited 2.01%, and second daughter Koo Yeon-su inherited 0.51%. Instead of stake, Kim was bequeathed an inheritance of approximately 500 billion won in financial investment products, real estate, and artwork.

However, conflict arose over the inheritance. In 2021, credit card issuance denial for CEO Koo became a point of contention. The reason for the rejection was "debt" that even CEO Koo was unaware of.

The three women issued a statement to the New York Times saying, "In exchange for Chairman Koo Kwang-mo inheriting more assets, he was to bear inheritance taxes alone, but without our knowledge, large loans were taken out using LG shares as collateral and inheritance taxes were paid."

LG countered, "The three women are making unilateral claims contrary to the agreement." Eventually, the three women filed a lawsuit to recover the inheritance in February 2023. The following year, Kim also filed an adoption dissolution lawsuit.

The three women maintain the position that Chairman Koo's inherited assets should be redistributed at statutory rates. They propose dividing it at a ratio of 1.5 (Kim Young-sik) to 1 (Chairman Koo Kwang-mo) to 1 (CEO Koo Yeon-gyung) to 1 (Koo Yeon-su). This would reduce Chairman Koo's stake ratio from 15.95% to 9.7%, and the three women's stake would become 14.04%.

However, the three women lost at first instance in February. They appealed in disagreement. Seoul High Court is scheduled to hold the first preparatory hearing for the appellate trial on the 4th.

by. Kim So Jung