April 27, 2024

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[THE INVESTOR] Prosecutors questioned Tuesday Lotte Group founder Shin Kyuk-ho at his office in Hotel Lotte in central Seoul over a string of corruption allegations raised against the conglomerate.

The Seoul Central District Prosecutors‘ Office said because of Shin’s health issues, its officials carried out the questioning of the 93-year-old business tycoon at his office, starting at 3:30 p.m.

The investigators plan to question Lotte Group chairman Shin Dong-bin after the Chuseok holidays that ends on Sept. 19. 

Prosecutors met with Shin the day before to examine his overall health. Shin, citing poor health, had asked investigators to visit him to carry out their probe. 

Lotte Group founder Shin Kyuk-ho

State prosecutors had originally summoned Shin to undergo questioning on Wednesday.

Shin is suspected of dodging some 600 billion won ($550 million) in taxes in the process of donating a combined 6.2 percent stake in Lotte Holdings, held in borrowed names, to his third wife, her daughter and his eldest daughter Shin Young-ja in 2006. Lotte Holdings is Lotte‘s de facto holding firm based in Tokyo.

During Wednesday’s meeting, Shin denied the allegations, saying he had ordered his employees to reduce the tax payment, not evade it, according to Shin‘s spokesperson Thomas Hong.

“I will pay if anything (has been evaded unlawfully),” he was cited by Hong as saying.

Shin also claimed that the statute of limitations on the stock transfer issue has expired, according to the spokesperson.

The prosecution has been investigating Lotte Group since early June over alleged slush funds, embezzlement and other irregularities.

Last week, a Seoul court designated a nonprofit subsidiary of a local law firm as legal guardian of the founder, saying he lacks the ability to make business decisions due to illness and old age.

(theinvestor@heraldcorp.com)