Prison term sought for Lotte founderProsecutors demanded a 10-year prison term and 300 billion won ($268 million) fine for Lotte Group founder Shin Kyuk-ho on Wednesday for embezzlement, breach of trust and other charges.
The 95-year-old Shin was indicted in October for a series of management irregularities, including ordering Lotte to pay a total of about 50 billion won in the name of wages to family members who had never worked for the company.
Shin was also accused of transferring his shares in Japan-based Lotte Holdings to family members at face value to help the recipients evade about 70 billion won in gift taxes. He was also charged with breach of trust for inflicting losses by giving his mistress the right to run concessions at Lotte Cinema movie theaters.
“Considering his status and role in this crime and the scale of profits he gained directly or via family members, a stern criminal punishment is inevitable for him, even in light of his [advanced] age and health conditions,” prosecutors said.