LG Group said on Thursday that it will split off four of its companies and form a new holding company that will manage them.
Out of the 13 subsidiary of LG Corp, the group’s holding company, LG International, LG Hausys, Silicon Works and LG MMA will split off and go under the new holding company. Pantos Logistics, a subsidiary under LG Hausys, will also be part of the transition, LG said.
The new holding company will be run by a new independent board of directors, the South Korea business group said.
LG advisor Koo Bon-joon will become its new CEO. Koo is the uncle of current LG chairman Koo Kwang-mo. The elder Koo helped his father and ex-chairman Koo Bon-moo, who passed away in 2018, grow LG Electronics, where he held a position of vice chairman.
The motion will go through shareholders’ approval on March 26, 2021. If the motion is passed, LG Corp will be split-off the new holding company on May 1.
LG Corp will focus on its core electronics, chemical and telecommunication businesses after the transition is complete, the company said.
The newly formed conglomerate will have great growth potential from its infrastructure, distribution, system chip design and building material businesses, LG said.
On the same day, LG Group also announced its group-wide year’s end reshuffle. CEO of its key subsidiaries maintained their positions.