Fraud charges for South Korea's Lotte founding family

20 Oct, 2016

South Korean prosecutors on Wednesday charged the chairman of retail giant Lotte Group, along with his father and brother, with tax evasion and embezzlement following a lengthy corruption probe. According to the indictment, chairman Shin Dong-Bin, 61, cost the country's fifth-largest family-run conglomerate 175 billion won ($162 million) through a series of financial scams and irregularities.
Similar charges were levelled against Shin's father, Lotte's 93-year-old founder Shin Kyuk-Ho, as well as Shin's older brother Shin Dong-Joo. The Seoul-based group, founded in Tokyo in 1948, has a vast network of businesses in South Korea and Japan including department stores, hotels and processed food, with combined assets valued at more than $90 billion. It has been in the headlines since last year due to a bitter and very public fight for control of the group between Shin Dong-Bin and his older brother. The dispute, which ended after the group's board members sided with Shin Dong-Bin, fuelled public criticism of how South Korea's dominant family-run conglomerates - known as "chaebol" - conduct their business affairs.

Read Comments