April 27, 2024

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[THE INVESTOR]  Prosecutors on Sept. 1 summoned Shin Dong-joo, former vice chairman of Lotte Holdings in Japan, for questioning as a suspect in the ongoing probe into Lotte Group’s irregularities that include massive slush fund creation and embezzlement.

Dong-joo, the eldest son of Lotte Group founder Shin Kyuk-ho, appeared at the Seoul Central Prosecutors’ Office at 9:50 a.m., without answering reporters’ questions on his charges.

Former vice chairman of Lotte Holding attends prosecutor's office. The Investor / Chung Hee-cho

He is suspected of embezzling some 40 billion won (US$35.82 million) in company funds, by registering as a board member of 7-8 Lotte affiliates, including Lotte Engineering & Construction and Hotel Lotte.

According to prosecutors, the questioning will focus on the usage of these funds and other corruption allegations against his father and his younger brother and group’s Chairman Shin Dong-bin. 

With his summoning, the prosecution resumed its inquiry into Lotte Group, which was on hold following the death of the group’s Vice Chairman Lee In-won. Lee committed suicide last week, just hours before he was due to appear for questioning in the group’s ongoing probe.

Dong-joo is the second person from Lotte’s founding family to be summoned by the prosecution since the probe began in early June. Shin Young-ja, chairwoman of Lotte Foundation and the eldest daughter of the founder, is currently under arrest on charges of embezzlement. The prosecutors questioned her on Aug. 31 on the alleged tax evasion that occurred in process of her inheriting Lotte Holdings’ shares.

Prosecutors are planning on summoning other key executives of Lotte Group before finalizing plans for questioning Kyuk-ho and Dong-bin.

By Ahn Sung-mi (sahn@heraldcorp.com)