LG Elec. chairman resigns due to spin off

By : |September 30, 2003 0

SEOUL: LG Electronics Inc., the world’s largest producer of airconditioners, said today that, its chief executive and chairman John Koo had resigned from the company as a part of a broader shake-up by parent LG Group.

Kim Ssang-su, the vice chairman, who has been with the company for the past 35 years, will take up the post of CEO.

The move comes as LG Group, the country’s second-largest conglomerate, tries to spin off four of its 51 affiliates from the group in an attempt to focus on its main stream businesses including home appliances and chemicals.

Koo is a son of the founder of LG Cable Ltd., one of four companies set to be spun off. Under South Korea’s fair trade regulations, an individual is barred from serving as a board of director for a company if the person or his relative is a board member of an affiliate seeking a spin-off.

Three other companies seeking separation from the group are LG Nikko Copper Inc, LG Caltex Gas and Kukdong City Gas. A formal application for the spin-off will be submitted to the Fair Trade Commission in early October, LG said.

The plan to spin off from the group was announced late last year.

Shares in LG Electronics rose 3.68 percent at 56,300 won by midday, outperforming the broader market which was up 1.6 percent.

© Reuters

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