We examine how LG which began as a small family company called the Rakhee Chemical Works has evolved as a family business group including leading global players in home appliance, display, and battery businesses along three pillars such as ownership structure, professionalization, and management ideology. First, during its early days, LG relied on family members for human and financial resources. As such, as the volume and size of the business expanded, did so the number of family managers and family investors. However, when the third-generation chairperson Mr. Bon Moo Koo was in office, LG reduced the number of family investors and simplified ownership structure by spinning off part of its businesses to family members and by transforming itself into a holding company structure with operating subsidiaries. Second, although LG, like any other family firms, had no choice but to rely on family members for human resources in the early days, it has relentlessly invested in professionalizing its employees and implementing decentralized management system. Delegation of decision-making authority along with the availability of professionalized executives is key to the successful growth of LG over time. Third, LG’s management ideology, which reflected the philosophy of the founder and his family, has evolved following the changes in environmental and management needs, including norms and values of “people-oriented management, customer-value creation, ethical management, and No. 1 LG”. These three pillars in isolation and in combination have created the sources of firm-specific, group-specific, and family-specific competitive advantages that have played a critical role in converting a small family company into a large business group including leading multinational firms.