In June 2020 LG finance executives met with Kim Young‑shik, widow of former chairman Koo Bon‑moo, at her Seoul hilltop home to review family finances. The discussion turned to a secret formula governing the division of the conglomerate’s 38 percent stake after Koo’s death. Executives disclosed that adopted son and current chairman Koo Kwang‑mo controlled roughly two‑thirds of that stake, about 26 percent, far above the 16 percent listed in filings.

Kim secretly recorded the meeting and filed a 2023 inheritance suit with her daughters, alleging they were steered into an agreement that gave Koo Kwang‑mo a slice of a $2 billion estate. They say shares were hidden in relatives’ names through nominee shares to avoid taxes. A February court dismissed case, but the family filed a criminal complaint in November 2024 against Koo and LG officials.

LG’s $2 billion‑plus valuation hinges on investor confidence in its governance. If prosecutors pursue the nominee‑share allegations, the conglomerate could face fines, heightened oversight, and a possible shake‑up of its board, pressuring share price and dividend policy. The dispute also spotlights broader chaebol reforms, reminding global investors that family‑controlled structures can conceal material risks.