Korean tech giant LG has officially announced that it will spin off some of its affiliates into a new holding company next year. The decision comes as a move to restructure the company at a time conglomerates are growing in size.
According to a report from Reuters, LG’s affiliates will be officially spun off in May next year. Currently, the holding company of these affiliates is LG Corp, and it will reportedly hold assets worth 9.8 trillion won (~$8.9 billion). However, the new holding company will have assets worth 900 billion won (~$814 million).
The companies listed below will spin out from LG Corp.
- LG International Corp
- LG Hausys Ltd
- Silicon Works Co Ltd
- LG MMA Corp.
- unlisted Pantos Logistics Co Ltd
Currently, LG Corp operates in several different businesses including batteries, display, cosmetics, household products, automobiles, and some of its clients include General Motors, Tesla, and Apple. Following the restructuring, LG hopes to focus more on its core business, including consumer electronics, chemicals, telecommunication & services.
This new holding company will likely be headed by Koo Bon-Joon, who is the son of one of the company’s founders and the nephew of the chairman at LG Group.