Gu Dong-hwi, CEO (Vice President) of LS MnM, will join the board of directors of LS SECURITIES, a subsidiary of the LS Group. Gu is the eldest son of Gu Ja-yeol, chairman of the LS board, and was appointed CEO of LS MnM in last year's year-end personnel reshuffle. There are speculations in the business community that Gu is expanding his activity into LS SECURITIES with the consideration of listing LS MnM and other major subsidiaries of the LS Group on the stock market.
According to the business community on the 14th, Gu is expected to be newly appointed as a non-executive director for a three-year term following the regular shareholders' meeting of LS SECURITIES scheduled for the 21st. The board of directors of LS SECURITIES explained that Gu was recommended for the position because he possesses a high level of understanding and insight regarding the subsidiaries within the group.
Gu moved to the position of CEO after serving as the CEO of the new growth division of E1, a liquefied petroleum gas (LPG) charging operator, and as the CEO of LS ELECTRIC. After one year as the Chief Operating Officer (COO) of LS MnM, he took the CEO position. He has received management training while overseeing the strategic sector in major subsidiaries of the group. Gu is leading the cultivation of the electric vehicle battery material sector, a key new business, alongside the mainstay metal smelting business such as copper smelting.
LS SECURITIES was incorporated into the LS Group last year. LS Networks indirectly controlled the former Ebest Investment & Securities by investing in G&A private equity, and through a change of major shareholders early last year, they came to directly hold the company. Recently, Kim Won-kyu, the representative of LS SECURITIES, was indicted without detention for violating the Act on the Aggravated Punishment of Specific Economic Crimes, and amid this, the LS Group effectively confirmed Kim's third consecutive term, raising concerns. In this situation, Gu, the third generation of the LS Group, joining the board of directors of LS SECURITIES has attracted attention. Gu also serves as an inside director at LS Networks and at Artemis Limited, a special purpose company and largest shareholder of LS Networks.
As Gu is set to also assume the directorship at LS SECURITIES, the securities career of him and his father, Chairman Gu Ja-yeol, draws attention. Before joining the LS Group as the Vice Administrator of the management strategy office at LS Industrial Systems (now LS ELECTRIC) in 2013, Gu worked at the former Woori Investment & Securities. Gu Ja-yeol has previously worked at LG Investment Securities, the predecessor of Woori Investment & Securities. LS SECURITIES has its roots in E-Trade Securities, a joint establishment by LG Investment Securities, U.S.-based E-Trade Securities, and Japan's SoftBank. Chairman Gu is known to have strong trust in Kim Won-kyu, the representative of LS SECURITIES, with whom he worked during his time at LG Investment Securities.
In the business and securities industry, as many subsidiaries of the LS Group are expected to go public (IPO), LS SECURITIES is projected to play a certain role. Companies preparing for listing include LS MnM, KOC Electric, a subsidiary of LS ELECTRIC, Essex Solutions, a subsidiary of the U.S.-based Superior Essex, and the electric vehicle charging company LS E-Link. LS SECURITIES is expected to strengthen its presence by supporting group subsidiaries in terms of fundraising and capital market strategies. LS SECURITIES participated as an underwriter when LS Materials, a subsidiary of LS Cable & System, went public for eco-friendly energy materials and components in 2023.
The holding company of the LS Group, LS, is reported to have promised to list LS MnM by August 2027 when it attracted investment from JKL Partners, a private equity management firm. Currently, the equity of LS MnM is divided with LS holding 75.1% and Artemis Limited, a special purpose company under JKL Partners, holding 24.9%.
An official from LS Group noted, 'The schedule for promoting the listing of LS MnM has not yet been determined.'