[비즈한국] It has been confirmed that the LG Welfare Foundation, led by CEO Koo Yeon-kyung, the younger sister of LG Group Chairman Koo Kwang-mo, recently purchased a development site near Seongnam City Hall in Gyeonggi Province. The site, which was originally slated for the construction of an officetel, is expected to house the first social welfare facility operated by the foundation. Last year, the LG Welfare Foundation relocated its workplace from the LG Mapo Building in Seoul—where LG Group's public interest foundations are clustered—to the LG Digital Park in Pyeongtaek, Gyeonggi Province, which is its registered office. Speculation is also growing that the foundation's base of operations may move once again.
According to industry sources and the real estate registry, the LG Welfare Foundation purchased an 800-square-meter plot of land near Seongnam City Hall in Jungwon-gu, Seongnam, Gyeonggi Province, via a direct transaction on the 28th of last month. The purchase price was 14.3 billion won. Although the land was originally intended for a 10-story officetel (57 units), it was reportedly put on the market after the real estate developer canceled the project. The LG Welfare Foundation signed a sales contract in June for approximately 59.04 million won per 3.3 square meters and took ownership two months later.
The LG Welfare Foundation is an LG Group social welfare organization. It was established in 1991 by the late honorary chairman Koo Ja-kyung (200 million won), who was the second chairman of LG Group, along with cash contributions from Goldstar (400 million won) and Lucky (400 million won). It currently operates programs to support socially vulnerable groups, such as the elderly, the disabled, and children, as well as "righteous people" who have sacrificed themselves for social justice. As of the end of last year, its total assets stood at approximately 73.3 billion won. Over the years, group affiliates such as LG Chem051910 and LG Display034220, along with the owner family, have contributed assets to the foundation.
The LG Welfare Foundation is currently led by CEO Koo Yeon-kyung, sister of LG Group Chairman Koo Kwang-mo. LG Group operates specialized public interest foundations in various fields, including the LG Yonam Cultural Foundation (est. 1969), Yonam College (1973), the LG Welfare Foundation (1991), and the LG Sangnok Foundation (1997). The LG Welfare Foundation is the only one among them with an owner family member serving as CEO. CEO Koo Yeon-kyung took office in April 2022, becoming the first woman from the group's owner family to lead a foundation. The other LG Group foundations are currently headed by Kang Yu-sik, former vice chairman of LG Management Development Institute.
The acquired site is expected to house the first social welfare facility directly operated by the LG Welfare Foundation. Previously, on the 14th of last month, the foundation added "operation of self-reliance support facilities under the Child Welfare Act" as a new purpose for its business. The plan is to operate a facility that protects children aging out of foster care and helps them achieve independence before and after they enter the workforce. While the foundation has conducted various tangible and intangible support programs for the vulnerable and "righteous people," it has not yet operated its own support facilities. It is reported that the foundation is currently preparing to apply for construction permits for the self-reliance support facility.
There is also a possibility that the LG Welfare Foundation's base will move. Currently, the foundation's registered office is located at LG Digital Park in Pyeongtaek, Gyeonggi Province, which is a manufacturing complex for LG Electronics066570. Until last year, the foundation's actual work was conducted at the LG Mapo Building in Gongdeok-dong, Seoul, where other LG Group public interest foundations are located. However, following internal discussions within the group, the office was reportedly moved to Pyeongtaek to align with its registered address. The other LG Group public interest foundations—the Yonam Cultural Foundation, Yonam College, and the Sangnok Foundation—still maintain their registered offices in the LG Mapo Building.
An official from the LG Welfare Foundation stated, "The land purchased this time was bought with approval from the competent authorities to pursue new public interest projects, and a self-reliance support facility is scheduled to be built there in the future." They added, "While there are plans for office space within the facility, there are no concrete plans to relocate the main office at this time."