South Korea’s Family Feud Fizzles … for Now
Tuesday turned into a drama‑filled episode of South Korean Business. The numbered Lotte Group, which already had a rough patch from recent scandals, opted to keep its jailed chairman, Shin Dong‑bin, in a key position at an important Japanese affiliate. The bold move? A surprise twist in a family feud that’s been simmering since the duo’s fathers left the throne.
Who’s the real boss?
Shin Dong‑bin, the younger son, ended up on jail’s lap for 2½ years last February after the infamous Park Geun‑Hye scandal. But he still makes a comeback, as shareholders gave the vote – and the pardon – that kept him in the executive wheel.
Enter Shin Dong‑joo, the elder. He pushed to boot his brother from the board of the Japanese affiliate. Instead, the board played it safe with the “absent” chairman and defended his brother’s hold. Lotte said they “were relieved” by the decision, and hinted at making a shaky resolution “promptly”.
Chaebols: The Giants with a Touch of ‘Wild Card’
Chaebols are the big family-run conglomerates of Korea – Samsung, Lotte, LG and a handful of others. They helped the country climb the global economic ladder thanks to low‑interest loans and close ties to the government. But the big issue these days? Everyone complains they squash innovation, let corporate house‑rules outshine competition, and the overarching families act like royalty on a rule‑free throne.
Talk of criminal charges (tax fraud, bribery) keeps popping up, especially among the big families. For instance, Samsung’s heir, Lee Jae‑yong, was jailed last year – though most of his convictions got overturned.
LG: A Light‑Hearted Success Story
Sorry for the melodramatic twist – LG’s story is more of a gentle you‑have‑to‑steal‑the‑spotlight drama. Koo Kwang‑mo, the adopted son of the late Koo Bon‑moo, got a seat on LG Corp’s board at a shareholders’ meeting.
Why the Family Matters
Koo Kwang‑mo – 40 years old, 1st nephew of the late chairman, but adopted in 2004. In South Korea’s traditional culture, the eldest male heir’s presence is a crown jewel. That’s why the family adopted him; it puts the bloodline and succession in guaranteed order.
LG Today
- Founded in 1931 as a cloth shop
- 68 subsidiaries worldwide
- 222,000 employees worldwide
- Estimated market cap ≈ S$136.3 billion
While the family enjoys the “do‑nothing” approach with many shares in the holding company (46.7 % collective stake), they’re caught in a faster‑moving market. Samsung and Chinese competitors are pushing into mobile and display tech. The Koo fire‑team are noticeably “slow” at expanding, according to chaebol.com.
Future‑Risk Outlook
President Moon Jae‑in’s team is trying to strip the chaebols of stubborn economic power, but while key laws targeting fair trade and corporate governance get pushed into blind alleys, the group is still safeguarding its interest. The wheels are turning, but the heavyweights are still steering the race.
