SEOUL, May 2 (Yonhap) — South Korean conglomerate LG Group has launched its new holding firm with about 8 trillion won (US$7.1 billion) of assets as part of its restructuring plan, company officials said Sunday.

The new holding firm named LX Holdings has five LG affiliates under its wing — LG International Corp., LG Hausys Ltd., LG MMA Corp., Silicon Works Co. and Pantos Co.

In November, LG Group decided to hive off some affiliates for Koo Bon-joon, an uncle of current LG Group Chairman Koo Kwang-mo and a younger brother of late LG Group chief Koo Bon-moo.

LG Group has a tradition in which the eldest son of the group chief inherits the management power of the conglomerate, while brothers of the chief create their own business groups with spinoff companies after the group leader’s death.

Trading affiliate LG International is expected to expand investment in raw materials for rechargeable batteries and eco-friendly business, and Silicon Works, the nation’s largest fabless semiconductor company, is expected to ramp up its chip business.

This image captured from the Korea Institute of Patent Information shows the logo of LX that could be used for spinoff companies from LG Group. (PHOTO NOT FOR SALE) (Yonhap)