April 20, 2024

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[THE INVESTOR]  South Korean prosecutors will summon Lotte Group Chairman Shin Dong-bin on Sept. 20, to grill him on his role in a series of irregularities the retail giant is accused of committing.

Shin will appear for questioning at 9:30 a.m. as a key suspect on charges of embezzlement and breach of trust, the Seoul Central Prosecutors’ Offices said on Sept. 18. According to Lotte Group, the chairman will fully cooperate with the ongoing investigation. 

Lotte Group Chairman Shin Dong-bin. The Investor

Shin, 61, is suspected of embezzling over 200 billion won (US$177.92 million) in the process of asset transfers and mergers and acquisitions between the group’s affiliates, as well as real estate transactions.

He is also accused of receiving some 10 billion won every year as a registered board member of the group’s Japanese affiliates.

The authorities are also looking into whether Shin was involved in the group’s alleged creation of a 30 billion won slush fund over the last 10 years, as well as tax evasion by the founding family.

The prosecution has already summoned a number of company officials and the other founding members, including the group’s founder Shin Kyuk-ho and his eldest son Shin Dong-joo, to secure evidence to zero in on the chairman.

After questioning Shin, the prosecutors are aiming to wrap up the three-month long probe into Lotte Group.

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