Remembering the life of late LG Honorary Chairman Koo Ja-kyung

LG Honorary Chairman Koo Ja-kyung

Koo believed that a company’s greatest competitive assets are its employees

LG Honorary Chairman Koo Ja-kyung

LG Honorary Chairman Koo Ja-kyung, the group’s second chairman who passed away on Dec. 14 from chronic illness, is seen as a figure who laid the groundwork for LG’s growth into the global company it is today through his focus on nurturing future talents.

Koo was born in Jinju, South Gyeongsang Province, in 1925 as the oldest son of LG founder Koo In-hwoi. After graduating from Jinju Normal School, he worked as a schoolteacher. His career as a businessman truly began in 1950 when, at the age of 25, he was called upon by his father to serve as a director for Lak Hui Chemical Industrial (now LG Chem). According to the LG Group, Koo personally poured materials into a furnace and stoked the fire to make its “Lucky Cream” cosmetic product, while performing night duty at the factory every other night to greet the wholesalers as they arrived at 5:30 the next morning. In doing so, he was setting himself as an example of a manager directly involved in activities on the ground.

Founding Chairman Koo In-hwoi passed away in 1969, and Koo Ja-kyung inherited the title of chairman a year later in 1970. His early days in the position were reportedly focused on research and development. In 1976, GoldStar (now LG Electronics) became the first South Korean private company to establish a central research institute, which acquired a development computer and high-frequency smelting furnace -- state-of-the-art equipment for its day. He would go on to establish over 70 other research institutes before stepping down as chairman in 1995. He stressed his plans to “play a pioneering role in advancing industry through domestic production in high-tech industry areas.”

Koo’s focus on R&D translated into an interest in nurturing future talent. His quotes on the topic -- such as his 1982 remark stressing that “people themselves are the most basic and final element in a company” -- are regarded as a model for other contemporary managers. In 1988, Koo established the LG Inhwawon training center as an institution for training talented minds.

The R&D efforts would bear fruit in the areas of chemicals and electronics, which make up the core of LG’s business. A GoldStar television factory was opened in Gumi in 1975; the following year saw the opening of the Changwon plant, South Korea’s biggest combined electronic equipment factory with production facilities for refrigerators, washing machines, and more. Many other products would also emerge with the “Korea’s first” title, including a 19-inch color TV and slim refrigerator model. The color TV would become a leading export contributor.

LG further laid the groundwork for its development into a global chemical company with the successive construction of chemical plants in Ulsan and Yeocheon, South Jeolla Province, during the 1970s. In the early 1980s, Koo built a general factory for daily essentials in Cheongju, North Chungcheong Province, and made the decision to re-enter the cosmetics sector that his father had exited in 1954. It was from this matrix that what is now LG Household and Health Care would emerge. Between 1987 and 1989, Koo was chairman of the Federation of Korean Industries (FKI).

In 1995, the year he turned 70, Koo announced that he was stepping down from a front-line management role after 25 years as chairman. It was the first “unblemished” succession in the history of South Korea’s chaebol groups. At the time, he explained, “I made the decision that the younger generation needs to take the reins now.” The third chairman of the group was his oldest son Koo Bon-moo, who passed away last year. After stepping down, Koo Ja-kyung focused on contributing to society through his role as chairman of the LG Yonam Foundation.

Wishes for as quiet and sedate a funeral as possible

Koo’s funeral was a simple affair. The LG Group stressed that it was a “private” occasion, announcing that it was to be “as quiet and sedate a family funeral as possible in according to with the wishes of the deceased and his family.” Funeral gifts and flowers were not accepted, with only the condolence flowers sent by President Moon Jae-in, National Assembly Speaker Moon Hee-sang, and Prime Minister Lee Nak-yeon put on display. Only a small number of direct descendants participated in the wake, with chief mourner and Heesung Electronics Chairman Koo Bon-neung joined by LT Group Chairman Koo Bon-sik, younger brother Koo Ja-hak (chairman of Ourhome), and grandson Koo Kwang-mo (chairman of LG).

Among those sharing their condolences at the wake were Blue House Chief of Staff Kim Sang-jo, Samsung Electronics Vice Chairman Lee Jae-yong, Shinsegae Chairwoman Lee Myung-hee and Vice Chairman Chung Yong-jin, Korea Chamber of Commerce and Industry Chairman Park Yong-maan, and Asan Foundation Chairman Chung Mong-joon. Also visiting the wake to remember the deceased were figures from the ruling Huh family at GS -- which was spun off after 57 years as LG’s industry partner -- including GS Honorary Chairman Huh Chang-soo and GS Chairman Huh Tae-soo. The funeral cortege is scheduled for the morning of Dec. 17. The interment site was not disclosed.

By Song Gyung-hwa, staff reporter

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