Shin Dong-bin moves to secure hold over LotteThe jailed head of retail giant Lotte has increased his stakes in Tokyo-based Lotte Holdings, the business group said Thursday, apparently to secure his managerial control over the conglomerate despite his resignation from the firm’s co-representative seat.
The board of Lotte Holdings, which effectively exercises control over the conglomerate’s business in Korea and Japan, approved Shin Dong-bin’s resignation on Wednesday.
The decision came after he was sentenced to two and a half years in prison in Seoul last week for bribery in relation to a massive corruption scandal involving former President Park Geun-hye and her confidante Choi Soon-sil. Both Park and Choi have also been sentenced to time in prison.
According to a recent regulatory filing from Lotte, Shin’s shares in the Japanese firm came to 4 percent, up from 1.38 percent - the last known figure for his share ownership - making him the largest individual shareholder of the company.
“It is hard to confirm when, why or from whom Shin purchased the shares, as it is a private matter,” a Lotte official said.
Industry watchers widely assume that the business tycoon bought the shares from his father’s mistress, Seo Mi-kyung, and her daughter, as part of his efforts to secure his grip on the conglomerate which runs sprawling businesses ranging from retail to construction and chemicals.
Shin Dong-joo, the eldest son of Lotte Group founder Shin Kyuk-ho, waged an unsuccessful battle against his younger brother, Dong-bin, to gain control over Korea’s fifth-largest conglomerate in past years.
In 2015, Shin Dong-joo was dismissed from his position in Lotte Holdings due to compliance violation and poor management acumen, according to Lotte Group.
Shin Dong-bin, meanwhile, retains his status as a director of the board of Lotte Holdings despite his resignation from the representative post, which he had shared with Takayuki Tsukuda.
More in Industry
Hyundai Motor is new darling of the stock market
Doosan Tower sells for 800 billion won as financial woes continue
Hyundai E&C wins big rail project contract in Philippines
Spud sundaes and ugly apples as retailers rush to help farmers