Industry

Lotte Group founder loses seat on holding firm board

Shin Kyuk-ho

The founder of Korea’s retail giant Lotte Group has lost his seat on the board of the conglomerate’s holding firm, industry sources said Saturday.

Japan-based Lotte Holdings, the holding firm of the group’s Japanese affiliates, decided not to extend the term of Shin Kyuk-ho as a board member during its shareholders meeting.

Lotte Holdings is at the top of Lotte’s Japanese affiliates via a cobweb-like ownership structure and holds a 19 percent stake in Hotel Lotte Co., a de facto holding firm of the group’s Korean units.

It will mark the first time since 1948 Shin completely departed from the group’s management.

During the meeting, shareholders also dismissed the proposal made by Shin Dong-joo, the eldest son of the founder, to designate himself as a board member and dismiss his younger brother Dong-bin.

Yonhap