[데일리한국 안병용 기자] LX Group was listed as a conglomerate group. Two years have passed since independence from LG Group. LX Group Chairman Koo Bon-joon became head of the conglomerate after two years of independent management.
According to the Fair Trading Commission’s ‘Disclosing Business Groups 2023’ data on the 26th, LX Group was newly designated as a business group subject to disclosure (assets of 5 trillion won or more) and a business group subject to cross-investment. restrictions (asset of 10 trillion won or more). LX Group ranked 44th among business groups with total assets of 11.27 trillion won. Chairman Koo, who leads LX Group, was designated as the same person (principal).
Accordingly, LX Group is required to submit designated data under the Fair Trading Act in future. In addition, cross-shares, cross-shares, debt securities, etc. are prohibited, and the exercise of voting rights by financial and insurance companies is restricted.
LX Group will celebrate its third year since its launch in May. LX Group, which split from LG in May 2021 and began ‘independent management’, officially completed the process of separating affiliates by being recognized by the FTC in June last year. By this designation as a conglomerate group, it seems to confirm its position.
LX Group incorporated LX Pantos as a subsidiary with four subsidiaries, LX International, LX Hausys, LX Semicon, and LX MMA, with LX Holdings as the main axis at the time of separation of related companies. Acquired a 100% stake in Korea Glass Industry, known as ‘Hanglas’, for KRW 590.4 billion, and acquired a 63.3% stake in Poseung Green Power, which operates an eco-friendly biomass power plant, through repeated M&A . Currently, it has 14 subsidiaries.
In addition, he expanded his business by establishing a biodegradable plastic joint venture (PBAT) with SKC and Daesang or participating in the development and operation of an eco-friendly logistics center in Busan. LX Pantos, a subsidiary of LX International, made an equity investment (31.1 billion won) in Traffics, a logistics company in North America, while LX Semicon acquired a 10.9% stake in Telechips, a domestic automotive semiconductor design company.
Last year, the group’s sales and operating profit increased by 57.7% and 234.3%, respectively, to KRW 25,273.2 billion and KRW 1,345.7 billion, compared to before the separation of affiliated companies (as of 2020). The group’s total assets, which were 8.93 trillion won before the separation of related companies, increased by more than 3 trillion won to 11.2734 trillion won.
LX Holdings, the group’s holding company, is diversifying the businesses of its subsidiaries and improving profitability and growth potential. A typical example is the launch of LX MDI (Management Development Institute), which serves as a management development organization within the group, in November last year. LX MDI plays a role in preventing and managing various projects and business risks in the field of consulting for affiliates. He is expected to lead the preparation for the future as the group’s think tank. Koo Koo, the eldest son of Chairman Koo, leads the company as CEO.
It also accelerates the establishment of corporate-led venture capital (CVC). LX Holdings added the financial business to its business purpose through a change in its articles of incorporation last year, and is currently accelerating internal discussions and preparations for the establishment of a CVC. It is known that Ku Yeon-je, the daughter of Chairman Koo, recently resigned from Magellan Technology Investment, an investment company, and is expected to join LX Holdings soon.
It is considered a challenge that the shadow of LG still lingers on the LX Group, which is celebrating its third year of independent management. Some affiliates are heavily dependent on LG for sales. Last year, 56.7% of Semicon’s total LX sales came from LG Display. LX Pantos also gained 56.3% of its total sales from LG Electronics and LG Chem.
An official from LX Group said, “This year, we plan to focus more on qualitative growth that maximizes the management efficiency of our core businesses and improves business value by promoting business structure.” , We will strive to create results based on the expertise of each link, such as renewable energy, environmentally friendly materials, and automation technology. “
