LG Inheritance Dispute Appeals Hearing Begins as Three Daughters Seek Reassessment

The appeals hearing for a 2 trillion won inheritance dispute surrounding the estate of the late Koo Bon-moo, former chairman of LG, has commenced.

The Seoul High Court's Civil Division 8-3, presided over by judges Lim Jong-hyo, Choi Eun-jung, and Oh Yang-sang, held the first preparatory hearing on September 4 at 4 p.m. This hearing was conducted privately and involved Koo Bon-moo's widow, Kim Young-sik, and his two daughters, Koo Yeon-kyung, head of the LG Welfare Foundation, and Koo Yeon-soo, who are suing Koo Kwang-mo, the current chairman of LG Group, for an inheritance recovery claim.

The session lasted approximately 40 minutes, during which the court heard the positions of both parties. The next preparatory hearing is scheduled for November 27 at 4 p.m.

The appeals process began after the three daughters filed an appeal against the first trial's ruling in February, which had favored Koo Kwang-mo. The daughters expressed their belief that the first trial's decision was unjust from the outset of the appeals hearing. Their legal representative stated after the session, "We thoroughly explained the essence of our claims to the court and strongly argued that the decision should differ from the first trial."

In response, Koo Kwang-mo's legal representative remarked, "There was nothing particularly new to discuss." He explained that the first trial was also held privately, and they preferred the appeals hearing to follow the same format, which the court accepted.

Previously, after losing his biological son in an accident, Koo Bon-moo adopted Koo Kwang-mo in 2004, in accordance with LG Group's longstanding principle of primogeniture. There were no significant conflicts between Koo Kwang-mo and the three daughters during Koo Bon-moo's lifetime, nor did any issues arise after his passing.

However, in February 2023, the three daughters unexpectedly filed a lawsuit against Koo Kwang-mo, seeking a redivision of the inheritance, marking the beginning of the inheritance dispute.

The core of the dispute centers on the legality of the inheritance of an 11.28% stake in LG Corp. left by Koo Bon-moo, who passed away in May 2018. At that time, Koo Bon-moo transferred 8.76% (15,122,169 shares) of the stake to Koo Kwang-mo, while Koo Yeon-kyung received 2.01% and Koo Yeon-soo received 0.51%. Additionally, the three daughters inherited assets worth 500 billion won, including real estate and financial investment products. However, they argue that the LG shares should be redistributed according to the legal inheritance ratio, which allocates 1.5 shares to the spouse and 1 share to each child.

The first trial court found that the three daughters had received multiple reports from Koo Bon-moo's financial management team regarding the details and division of the inheritance. Based on this, the court determined that the discussions regarding the division of the inheritance with Koo Kwang-mo were conducted legally. The court also concluded that there was no evidence of fraudulent conduct during the drafting of the agreement and that the timing of the lawsuit exceeded the statute of limitations.