Richest under 40: Koo Gwang-mo

[BORN TO BE RICH] Among South Korea's richest aged 40 years or younger, LG chairman’s the adopted son Koo Gwang-mo, 38, of LG Group is the wealthiest. His net worth is estimated at 751.8 billion won (US$650.5 million).LG Corp. vice president Koo Gwang-mo.Koo is the great grandson of LG’s founder, the late Koo In-hoe. He was born to Heesung Group chairman Koo Bong-neung, but was adopted by his uncle Koo Bon-moo, chairman of LG. Gwang-mo is currently a vice president of LG Corp. He was promoted to

June 22, 2016

Conservative heavyweight calls for control on chaebol

[THE INVESTOR] The ruling Saenuri Party on Monday called for strengthened supervision on conglomerates’ lax management and tax-evading power succession practices as part of a long-term vision to achieve social compromise and lessen inequality.By prioritizing distribution over growth and advocating the rights of irregular workers, the conservative party gestured at expanding its political horizon to the centrist-reformist zone.“A nation that is not just may not stand straight,” said floor leader

June 20, 2016

Conglomerates selling stakes in money-making affiliates to raise funds

[THE INVESTOR] Owners of the nation’s top conglomerates are increasingly selling their stakes in various money-making affiliates to raise funds needed for participating in capital increases of other key affiliates.On June 8, Hanjin Group chairman Cho Yang-ho sold a 6.87 percent stake in one of Hanjin’s real estate brokering affiliates for 25.1 billion won (US$21.3 million), according to a regulatory filing on June 16. The brokering affiliate had posted 41.3 billion won in sales and 14 billion wo

June 17, 2016

Arrest warrant rejected for former Oxy Korea CEO

[THE INVESTOR] A Seoul court on June 17 rejected an arrest warrant sought for former Oxy Reckitt Benckiser CEO John Lee amid an escalating probe into the company’s toxic humidifier disinfectant scandal. The Seoul Central District Court said the evidence complied thus far against Lee is not strong enough to issue an arrest warrant. Lee, a 48-year-old Korean-American who currently heads Google Korea, is suspected of not taking appropriate measures despite rising health complaints from users when h

June 17, 2016

Divorce battle reveals unknown aspects of Samsung family

[THE INVESTOR] Packed with twists and turns, a divorce suit between former Samsung Electro-Mechanics executive Lim Woo-jae and his wife and Hotel Shilla president Lee Boo-jin unveiled unknown stories behind the family owners of Samsung Group, the largest conglomerate in Korea.Lim, first son-in-law of Samsung Group chairman Lee Kun-hee, said in an interview with Korean news publication Hankyoreh on June 16 that he had twice attempted suicide during the 17 years of his marriage due to pressure fro

June 17, 2016

Top 10 chaebol owners rake in hefty dividends

[THE INVESTOR] The nation’s top 10 chaebol owners raked in hefty dividends from affiliates over the past five years, Chaebul.com, a local website that tracks chaebol, revealed on June 15. The total amounts of dividends reached almost 1.5 trillion won ($1.3 billion) between 2011 and 2015.Chaebul.com said their actual dividends could be a lot more considering the figures are based on their listed companies only. #1 Samsung Electronics chairman Lee Kun-hee with 681.1 billion won in dividends The Sa

June 15, 2016

Rise and fall of Korean shipbuilding tycoon

The founders of many South Korean conglomerates have led dramatic lives, with resemblance to the domestic economy rising fast from the ashes of the Korean War.One thing that the business tycoons have in common is the culture of pursuing fast growth, which has contributed to the nation’s rapid rise. Their growth obsession, however, sometimes ends in tragedy. The latest conglomerate leader to suffer a freefall is STX Group founder and former chairman Kang Duk-soo. Former STX Group chairman Kang Du

May 31, 2016

Young start-up acquires 50-year-old B&W

In an unusual development, a well-established company with a history of half a century was acquired early last month by a 2-year-old small start-up.Normally well-established companies acquire smaller firms, not the other way around. However, in this case, the start-up Eva Automation -- with a staff of 50 people in Silicon Valley -- took over the British audio company Bowers & Wilkins that has 1,100 employees.Eva Automation is a specialized audio and video systems firm that is yet to release any

May 31, 2016