April 24, 2024

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[THE INVESTOR] Prosecutors have summoned Lotte Group founder Shin Kyuk-ho for questioning on Sept. 7 amid their ongoing probe into the retail giant’s snowballing corruption scandal.

The ailing Lotte patriarch, 94, said he planned to answer the summons but asked prosecutors to visit him citing his deteriorating health condition.

“We are adjusting the schedule with Shin’s doctor,” a Lotte official was quoted as saying by a local news outlet on Sept. 5. 

Lotte Group founder Shin Kyuk-ho

Shin is suspected of evading donation taxes worth 600 billion (US$540 million) when he donated his 6.2 percent stake in Lotte Holdings to his common-law wife Seo Mi-kyung and daughter Shin Yu-mi in 2006.

He is also facing an embezzlement charge for causing 78 billion won loss among Lotte affiliates by putting orders on convenience stores at Lotte Cinema chains that are operated by Seo.

In January this year, Shin appeared before prosecutors to be questioned over the ownership battle between two sons -- Shing Dong-joo, former vice chairman of Lotte Holdings in Japan, and his younger brother, Lotte Chairman Shin Dong-bin.

On Aug. 31, a court appointed a pro bono organization as guardian of Shin, deeming him mentally unfit to carry out business operations. But he resisted the court decision, hinting at legal action.

By Lee Ji-yoon (jylee@heraldcorp.com)