LG heir Koo Kwang-mo wins first-instance inheritance dispute... Court rules “inheritance agreement is valid” [Comprehensive]

[Financial News] In the first-instance trial over the inheritance of assets left by the late former LG Group chairman Koo Bon-moo, the court has ruled in favor of LG Group chairman Koo Kwang-mo against other members of the LG family.
On the 12th, Civil Division 11 of the Seoul Western District Court, presided over by Judge Koo Gwang-hyun, dismissed in full the inheritance recovery lawsuit filed by Kim Young-sik, Koo Yeon-kyung, head of the LG Welfare Foundation, and Koo Yeon-soo against Chairman Koo.
In February 2023, the three women filed the suit, arguing that “the inherited assets must be redistributed.”
The court held that the agreement on the division of inherited property reached in 2018 is valid. It found that Kim and her two daughters had been given multiple explanations about the size of the estate and how it would be divided, and that they also took part in the negotiation process. The court also pointed out that Kim was a party to the agreement herself and participated on behalf of her youngest daughter, and cited this as a basis for its decision.
The court further concluded that it was difficult to recognize any deceitful conduct. The plaintiffs had argued that, at the time of the inheritance agreement, they agreed to it because they believed there was a will or memo stating that Chairman Koo would succeed to the management assets, but in reality no will existed.
The court found it reasonable to conclude that the late chairman Koo Bon-moo had expressed his intention to transfer the management assets to Chairman Koo Kwang-mo and that a “memo on maintaining succession of control” summarizing this intention did exist. It also held that the scope of management assets could include not only shares in LG but also stakes in affiliates and deposits used as funds to defend management control.
The court ruled that, even if there were some misunderstandings, the fact that an agreement was reached on how to divide individual inherited assets meant the agreement itself could not be deemed invalid. However, it found that the filing of the lawsuit was not time-barred. Inheritance-related suits must be brought within three years from the date the claimant becomes aware that their inheritance rights have been infringed, and the court indicated that the three women clearly recognized problems in the inheritance process around 2022.
The late chairman Koo Bon-moo died in May 2018, reportedly leaving an estate worth about 2 trillion won. Under a family agreement, 11.28% of LG shares were inherited as follows: 8.76% to Chairman Koo, 2.01% to Koo Yeon-kyung, and 0.51% to Koo Yeon-soo. Although Kim did not directly inherit any shares, she is believed to hold a stake of around 4%.
With this ruling, the inheritance dispute within the LG family that has continued for about three years has effectively come to a close for now. However, depending on whether an appeal is filed, further legal battles may follow.

425_sama@fnnews.com Choi Seung-han Reporter