1st-, 2nd-generation business tycoons fading away

A memorial altar for LG Group Honorary Chairman Koo Cha-kyung who passed away Saturday / Courtesy of LG Group

By Jun Ji-hye

Business circles are expressing their condolences on the recent deaths of the first- and second-generation corporate leaders who steered companies through the nation's industrial age and helped Korea join the ranks of advanced nations.

LG Group Honorary Chairman Koo Cha-kyung, the second-generation leader at LG, died Saturday of a chronic illness at age 94. Koo is the grandfather of the current LG Chairman Koo Kwang-mo.

Koo's passing followed the deaths of former Daewoo Group Chairman Kim Woo-choong on Dec. 9 and former Hanjin Group Chairman Cho Yang-ho in April.

Born in 1925, the late Koo took the helm of LG in 1970, following the death of his father, LG founder Koo In-hwoi.

At that time, he had started off with eight affiliates under LG's wing, but by 1995 when he retired, LG was the third-largest business group in Korea with more than 30 affiliates.

The firm's sales also increased significantly under Koo's 25-year leadership, from 26 billion won ($22 million) to 30 trillion won.

During his time, Koo especially focused on research and development to secure new technologies, setting up some 70 LG R&D centers and creating a foundation for LG to become a global tech giant.

Koo was a pioneer in the nation's chemical and electrics industries, and expanded LG's presence in key overseas markets, including China, Southeast Asia and Europe.

“We decided not to unveil the place and time for Koo's funeral at the wishes of the deceased and his family,” a LG official said.

The Korea Chamber of Commerce and Industry (KCCI) honored Koo, saying he contributed to the development of the nation's chemical and electrics industries.

“He also spared no efforts to make LG a company trusted by the public through his customer-centered management,” the KCCI said in a statement.

The Federation of Korean Industries said, “Koo was a leading entrepreneur who helped pave the way for the nation's industrialization,” while the Korea Enterprises Federation said, “Koo's management philosophy has become an example to a number of businessmen.”

Former Daewoo Group Chairman Kim Woo-choong, the founder of the trading-to-automotive conglomerate, also died this month at age 82 after having struggled with illness for about a year.

The first-generation corporate leader was once touted as one of the most successful businessmen in Korea, making Daewoo a conglomerate and paving the way for its international expansion in emerging markets of Eastern Europe and Africa.

Former Hanjin Group Chairman Cho Yang-ho, who died from a chronic lung disease in Los Angeles in April, was the first son of the group's founder Cho Joong-hoon.

Born in 1949, Cho entered Korean Air in 1974 and quickly climbed the corporate ladder to become the president of the company in 1992 and chairman of Hanjin Group in 2003.