The soon-to-launch LX Holdings is close to settling a name dispute with the Korea Land and Geospatial Informatix -- a public agency which has been operating under the name LX for years. The two have decided to share the name, an official at the state-run institute LX told The Korea Herald on Thursday.
“Both parties have agreed to use ‘LX’ name together and discussions are underway over how LX Holdings will make compensations to LX,” said the official.
Set for an official launch on May 1, LX Holdings is a new holdings unit spun off from LG Corp. with nonelectronics affiliates under its umbrella -- LG International, LG Hausys, LGMMA and Silicon Works.
On March 26, LG Corp. approved the establishment of LX Holdings at the shareholders meeting. However, LX took issues with the name, saying that it could create confusion among the public if the two companies operate under the same name and that its years of effort in building a brand image will be affected.
On April 14, LX filed a complaint with the Korean Fair Trade Commission. LX wished to take the matter to the court, but couldn‘t because LX Holdings wasn’t a legal entity yet.
LX Holdings’ separation from LG, the fourth largest conglomerate in the country, attracted considerable public attention. With assets evaluated at 7.6 trillion won ($6.7 billion), the envisioned LX Group would rank the 52nd biggest conglomerate in Korea.
Koo Bon-joon, a younger brother of late LG Group chief Koo Bon-moo and an uncle of current LG Group Chairman Koo Kwang-mo, will helm the new entity.
Last November, LG decided to carve out some affiliates to Koo Bon-joon. LG holds a tradition of allowing the eldest son of the group’s chief to inherit management positions. Brothers of the chief have to create their own business group with spin-off companies when the chief passes away. LS Group, LIG Group and Heesung Group are examples of such tradition.
By Kim Byung-wook (firstname.lastname@example.org