April 19, 2024

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[THE INVESTOR] Lotte Group founder Shin Kyuk-ho and his daughter Shin Young-ja drew large salaries despite the group’s crisis and not playing a professional role, regulatory filings show.

The first half financial statement Lotte Shopping filed on Aug. 17 shows that Shin Kyuk-ho received 800 million won (US$725,000) in salary for the period. 

Lotte Group founder Shin Kyuk-ho

However, Shin Kyuk-ho has played no part in management since October.

In comparison, Lotte Group chairman Shin Dong-bin’s salary for the period came to 625 million won, while those of the Lotte Shopping subsidiaries’ CEOs are estimated to be about half of Shin Kyuk-ho.

While the elder Shin continued to draw a large salary, Lotte Shopping’s performance has plunged. The company’s first half operating profit fell 19.2 percent to 379 billion won, and the company’s retail arm posted 63 billion won in operating losses in just the second quarter of the year. 

Shin Young-ja, the Lotte Foundation chief. / The Investor

Shin Young-ja, the Lotte Foundation chief, received more than 1.2 billion won from Hotel Lotte despite being indicted on charges of embezzlement and other wrongdoings.

According to Hotel Lotte’s first half report, Shin Young-ja received about 850 billion won in salary, as well as a bonus of nearly 500 million won.

Choi He-suk (cheesuk@heraldcorp.com)