Summary
GS Group, which primarily operates in the energy, distribution, and construction sectors, is known for its “beautiful separation” and “conflict-free family management.” The group was formed through the separation and independence of four companies from LG Group. The process began with the launch of GS Holdings (now GS Corporation) on July 1, 2004, and the legal separation was completed with the Fair Trade Commission’s approval on Jan. 27, 2005. GS Group officially launched on March 31, 2005, with the GS CI and management philosophy declaration ceremony. As of 2023, Huh Tae-soo is the chairman, and the group is ranked seventh in the Korean business world.
The origins of GS Group can be traced back to the founding of Koo In-hwoi Store in 1931 by Koo In-hwoi, who later established Lucky Chemical Co., Ltd., the precursor to LG Chem, with Huh Man-jung in 1947. Koo In-hwoi, the founder of LG Group, initially began with a textile store in Jinju, South Gyeongsang Province, which evolved into Koo In Trading Company in 1940. Following Korea’s liberation, Koo In-hwoi moved to Busan and restructured his ventures. LG Group, originally a partnership between Koo In-hwoi and his brother Koo Chul-hwoi, welcomed the Huh family, related by marriage and led by Huh Chang-soo, into the fold in 1941 with a 60-40 share ownership. After over 60 years of partnership, the Huh family initiated their separation from LG Group by establishing GS Holdings in 2004, which became an independent entity on Jan. 27, 2005. Despite the separation and the settlement of their shares, the Huh family maintains a friendly relationship with LG Group.
GS Group differs from LG Group in its approach to family management. Unlike LG’s principle of succession by the eldest son, GS practices joint family management, involving up to 49 related parties in its holding company. The second, third, and fourth generations of the family share in the group and affiliate shares, profits, and decision-making. They conduct family meetings for crucial decisions. The group’s governance structure is considered stable due to its early adoption of the holding company system, and it has successfully maintained its family management structure without significant issues.
In the share structure of GS Corporation, third-generation manager Huh Yongsoo, CEO of GS Energy, and Huh Chang-soo, chairman of GS E&C and honorary chairman of GS, hold significant shares of 5.26% and 4.75%, respectively. Following them, fourth-generation members like Huh Joon-hong, CEO of Samyang Tongsang (2.85%), Hur Sae-hong, CEO of GS Caltex (2.37%), Huh Yeon-soo, Vice Chairman of GS Retail (2.26%), Huh Kwang-soo, chairman of Samyang International (2.19%) and GS ITM, Huh Seung-jo, former Vice Chairman of GS Retail (2.16%), Huh Suh-hong, Vice President of GS Corporation (2.1%), Huh Tae-soo, Chairman of GS Corporation (2.12%), and Huh Kyung-soo, Chairman of Cosmo Group (2.11%), also hold more than 2% of the shares each. The holding company, GS Corporation, oversees GS Caltex, GS Retail, and GS Home Shopping subsidiaries and is affiliated with GS E&C.
Timeline
▲ 1947 = Koo In-hwoi (founder chairman of LG) and Huh Man-jung (founder of GS) established Lucky Chemical Co., Ltd. (now LG Chem).
▲ 2004 = Establishment and official launch of GS Holdings (currently known as GS Corp.). Huh Chang-soo inaugurated as Chairman and CEO of GS Holdings.
▲ 2005 = Approvement of the separation of GS Holdings and 13 affiliated companies by Fair Trade Commission.
▲ 2009 = Acquired a stake in Ssangyong Corporation (currently GS Global).
▲ 2010 = Establishment of a new brand identity and announcement of the brand slogan “Grow with uS, GS.”
▲ 2020 = Huh Tae-soo inaugurated as Chairman of GS Group—establishment of Corporate Venture Capital (CVC) GS Futures and GS Ventures.
