LS Group and LIG Group signed a strategic alliance agreement Monday, strengthening ties between the Pan-LG family conglomerates as LS faces mounting pressure from rival Hoban Group’s recent stock purchases and ongoing legal disputes.
The two groups, both spun off from LG Group in 2003 and 1999 respectively, will collaborate across multiple sectors including advanced materials, defense systems, electricity, energy and communications. The partnership aims to leverage LS’s expertise in materials and cable technology with LIG Nex1’s weapons systems capabilities.
A joint consultative body will soon be established to outline specific collaboration areas and execution timelines for joint research, market analysis, technology sharing, and potential joint ventures.
The alliance comes at a sensitive time for LS Group. Hoban Group, parent company of cable manufacturer Taihan Cable & Solution, recently purchased a stake of just under 3% in LS Corp., the holding company of LS Cable & System. The two cable makers are locked in a patent infringement dispute that has seen court rulings favor LS.
While Hoban described its share purchase as a simple investment based on growth potential in the power industry, market observers view it as potentially strategic. Under Korea’s Commercial Act, a 3% stake would allow Hoban to request extraordinary shareholder meetings, make proposals, demand dismissal of directors, and inspect financial records.
The Pan-LG family displayed unity at GS Group’s 20th anniversary event last week, where chairmen from GS, LG, LIG and LS groups gathered, setting the stage for Monday’s alliance announcement.
