Two of Korea’s best known family-owned conglomerates ― LG and GS ― have finally severed their ties for good after more than six decades.

Last week, LG group’s corporate trading arm LG International, sold off its remaining 11.97 percent stake in GS Retail worth 287.6 billion won ($250 million).

The move comes seven years after the two groups went their separate ways by splitting up the affiliates under the names of LG and GS.

LG is led by the Koo family, and GS by the Huhs.

“It was widely expected, and also a symbolic move that’s seen as beneficial for both sides,” said an LG official.

The fraternal partnership between LG and GS dates back to 1947 when LG Group founder Koo In-hwoi built Lucky Industry Co. from the ground up.

It was the seed money from the late grandfather of current GS Group chairman Huh Chang-soo that helped the late Koo to set up a company that would eventually become one of the top 10 conglomerates in Korea.

For decades, the two families of Koo and Huh had seemed inseparable, their fates entwined into one, depending on the rise and fall of LG.

But a few years after the new millennium, the Huh family broke away and formed GS Group, taking with them affiliates involved in energy, retail and construction.

The split was an amicable one, but it did leave behind memorable stories that the children and grand children of both the Koo and Huh families will tell for some time, inside sources say.

At the center of one high-profile argument was the rights to control LS Cable and System, a company that Huh’s father, former honorary chairman Huh Joon-koo, had molded with his own two hands.

The Koos wanted LS for its energy-related affiliates, headed by the siblings of the founding family. In the end, the GS side agreed to LG’s requests.

Following their official split, the two families pledged to respect the other’s business acumen and consider the other’s areas off-limits ― Huh Chang-soo has often said that while GS would maintain cooperative ties with LG based on their long-term partnership, “we would not operate in LG terrain” ― but the two groups often ended up supporting the other.

For instance, LG Group led by Koo Bon-moo has broken into the construction business, which was formerly seen as exclusive ground for GS, while GS is making unprecedented foray into fields such as trade and secondary cells.

The 11.97 stake held by LG International was a part of the 31.9 percent stake it had been holding onto in GS Retail. LG had sold off parts of the share, and has now let it all go at 31,200 won apiece.

“The sale of GS Retail is highly likely to benefit the company’s stock prices as there is now no need to fear that the stocks may suddenly pour into the markets to weigh down the stock value,” said Kim Ki-young of SK Securities.

LG International, meanwhile, has secured the funds needed to develop future growth engines, experts noted: the company reportedly gained some 700 billion won of cash liquidity thanks to the sell-off.

LG International has its eyes set on resources development as its next step, and has accordingly been seeking a foothold in related projects in regions such as Central Asia, Oman and Russia.

By Kim Ji-hyun  (jemmie@heraldcorp.com)