이 기사는 2021년 12월 17일 08시01분 thebell에 표출된 기사입니다

Koo Bon-joon, chairman of LX Holdings, has purchased a 32.32% stake in the holding company from LG Group chairman Koo Kwang-mo and eight specially related persons, which marks the completion of LX’s spin-off from LG.

Tuesday’s transaction, worth approximately 300 billion won ($253.4 million), increased Koo Bon-joon’s stake in LX Holdings from 7.72% to 40.04%, making him the largest shareholder.

Koo Kwang-mo, Koo Bon-joon’s nephew and head of LG Group, sold his entire 15.90% stake in LX Holdings to his uncle. Other eight shareholders also disposed of almost all of their stakes in the company.

In contrast, Koo Bon-joon sold part of his stake in LG Corp, the holding company of LG Group. He sold a 4.18% stake to an external investor for 500 billion won via a block deal and donated a 2.04% stake to LG Group’s welfare foundations, while keeping the remaining a 2.04% stake. His son and vice president of LX Holdings, Koo Hyung-mo, will also retain his 0.6% stake in LG Corp.

Under South Korean law, a family-run conglomerate’s spin-off requires members of the owner’s family to cross-hold less than 3% of two listed holding companies. After the latest transaction, Koo Bon-joon and his son together own a 2.64% stake in LG Corp, slightly below the 3% limit.

Koo Bon-joon decided to keep some shares in LG Corp, probably because of a large gap between prices of the two stocks. Koo Kwang-mo’s holding in LX Holdings was valued at about 150 billion won, while Koo Bon-joon’s holding in LG Corp was worth more than 1 trillion won.

Unlike his nephew, who is in need of cash to pay inheritance tax, Koo Bon-joon does not need to cash out his holding quickly. He could also benefit from a potential rise in the price of LG Corp shares.

Some industry experts say that retaining some shares in LG Corp could be part of a succession plan. If Koo Hyung-mo inherits or is gifted his father’s shares, this would trigger a tax bill of tens of millions of dollars.

“With the spin-off completed, it is likely that chairman Koo Boon-joon will turn his attention to a succession plan,” an industry expert said. “LG Corp shares held by him and his son will likely be used to free up financial resources needed for a succession of management rights.” (Reporting by Sang-hee Park)