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Biz News Korea(Eng)
Jailed Lotte chief resigns as chairman of Lotte Holdings Japan
- Collected
- 2018.02.22
- Distributed
- 2018.02.26
- Source
- Go Direct
The company announced Wednesday that Shin will step down from his position as chairman but remain on the board by retaining his double title as vice chairman. Lotte Holdings would be headed by Japanese co-chair Takayuki Tsukuda.
Last Tuesday, Shin was sentenced to a 30-month jail term on bribery charges involving a massive corruption scandal that removed former President Park Geun-hye. He must appeal behind bars.
A Lotte Group official said the decision follows the general practice of Japan, where executives given a prison sentence are usually dismissed.
Shin’s removal is a mild encouragement for his older brother Shin Dong-joo, who resumed his bid for control over the conglomerate with operations in both Japan and Korea by issuing a statement demanding his younger brother’s immediate resignation and dismissal upon news of the conviction.
The young Shin’s misfortune will likely revive the sibling feud in the family-run corporate empire which is the fifth largest conglomerate in Korea. The two siblings have been vying for control over the Japanese holding company, which lies at the center of the group’s complicated ownership structure as it commands a majority stake in Hotel Lotte, which in turn controls a number of affiliates in Korea.
Shin Dong-joo, who lost his title as vice chairman of Lotte Holdings Japan in 2015, continues to hold influence over the Tokyo-based company through his control of Kojunsha, an asset management firm that owns the largest 28.1 percent stake in the holding company.
By Lee Han-na and Kim Hyo-jin
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