LS Group has promoted Koo Bon-kyu, CEO of LS Cable, to vice chairman, accelerating the transition to a third-generation management structure. This marks the first time a third-generation vice chairman has emerged from the group's key manufacturing affiliates, potentially influencing future succession dynamics.
On November 5, LS Group held a board meeting to announce its executive appointments for 2027. A total of 15 individuals were promoted, including one vice chairman, one president, one senior vice president, three executive vice presidents, and nine managing directors. Most CEOs of major affiliates will remain in their positions, emphasizing organizational stability. The changes will take effect on January 1, 2027.
The key highlight is the promotion of Koo Bon-kyu. The son of Koo Ja-yeob, honorary chairman of LS Cable, Koo has driven significant growth since taking over as CEO in 2022, expanding high-value power network projects such as subsea cables and high-voltage direct current (HVDC) systems. LS Cable's order backlog surged from 2.74 trillion won at the end of 2021 to 9.55 trillion won by mid-2023, a 3.5-fold increase. The company's operating profit for the first half of this year reached 238.4 billion won, surpassing the annual operating profit of 230.4 billion won recorded in 2021.
Koo Bon-kyu is the second third-generation member to be promoted to vice chairman, following Koo Bon-hyuk, who became vice chairman of Inveni in 2024. His promotion is particularly significant as it recognizes his management achievements within a core manufacturing affiliate.
Since separating from the LG Group in 2003, LS Group has maintained a joint management system among cousins. Koo Ja-hong and Koo Ja-yeol have each led the group for about nine years, while Koo Ja-eun, who took office in 2022, is considered the last second-generation chairman. If existing practices continue, a transition to third-generation management is anticipated around 2030. Analysts suggest that Koo Bon-kyu's promotion positions him favorably in the upcoming succession competition.
The recruitment of Choi Won-jin, former CEO of Lotte Insurance, as head of LS Group's management strategy division is also noteworthy. Choi, a graduate of the 43rd National Civil Service Examination, is a capital market expert with experience at the Ministry of Finance and Economy, the International Monetary Fund (IMF), and private equity firm JKL Partners. He was involved in LS MnM investments during his time at JKL Partners. LS Group plans to assign Choi the task of reviewing future business strategies and strengthening financial strategies.
Choi's recruitment comes at a time when LS Group is reassessing its funding plans amid concerns over dual listing controversies. The company had aimed to raise approximately 500 billion won through the IPO of its U.S. subsidiary, Essex Solutions, to expand its production facilities in the U.S. However, existing shareholders have expressed concerns that a subsidiary's listing could dilute the parent company's value, prompting LS to consider options, including a temporary halt to the listing.
Industry observers believe Choi will play a crucial role in minimizing the dual listing controversy while securing investment resources. His experience in private equity may lead to a redesign of capital market strategies, focusing on attracting external investments and improving financial structures.
* This article has been translated by AI.
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