GS Group Officially Splits
from LG Group
- Plans to accelerate its corporate identity process

GS Group has officially received permission from the Fair Trade Commission to begin operating as an independent business group, separating from LG Group.
GS Group's division has lowered the ranking of LG Group from second place to third, yielding the No.2 position to Hyundai Motor and Kia Motors Group in terms of assets. Assets of LG Group declined from 61.6 trillion won to 47.3 trillion won as of the end of 2003. The split puts an end to 57-year-old business partnership between the Koo and Hur families over three generations.
GS Group announced on Jan. 27 that GS Holdings, the holding company of GS Group, and 13 subsidiaries obtained the go-ahead from the Fair Trade Commission to split from LG Group.
With the official separation from LG Group, GS Group plans to accelerate its ongoing new corporate identity (CI) project as well as management philosophy and vision on establishing itself as a prestigious group of energy, distribution and service industries.
GS Group has 13 subsidiaries, including LG Caltex Oil, LG Mart, LG Home Shopping, LG Engineering & Construction Co. Hur Chang-su, former chairman of LG Engineering & Construction, has taken the helm of the business group.
LG Caltex Oil has decided to change its name to GS-Caltex as of March 31. LG Home Shopping and LG Mart will be reborn as GS Home Shopping and GS Retail, respectively. LG Engineering & Construction is considering changing its name to GS Engineering & Construction in a shareholders' meeting slated for March.
Assets of GS Group were estimated at 16.4 trillion won, ranking sixth or seventh among conglomerates, excluding public corporations.
GS Holdings has 1.15 trillion won worth assets, enough room to invest.
GS Group strives to become an integrated energy company. A majority of same clients share LG Caltex Oil, LG Mart and LG Home Shopping, bringing about the synergy effect. A GS Group official said GS Group will be equipped with a holding company with a model governance system, and the traditional spirits of the Koo and Hur families - harmony and partnership - will be maintained, but the GS Group will be reborn with differentiating business areas and priority investments. nw