April 27, 2024

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[THE INVESTOR] Lotte Group Chairman Shin Dong-bin admitted that his company offered multibillion-won funds to a nonprofit foundation involved in a corruption scandal surrounding President Park Geun-hye and her confidante, but denied his direct involvement in the financial support.

“Lotte provided 7 billion won (US$5.98 million) to K-Sports Foundation but I wasn’t involved in the funding,” Shin said during a parliamentary hearing on Dec. 6. 

Lotte Group Chairman Shin Dong-bin                                                             Ahn Hoon/The Investor

K-Sports Foundation, which was set up and controlled by the president‘s longtime friend Choi Soon-sil, is one of the epicenters of the influence-peddling scandal rocking the nation.

Choi allegedly collaborated with former presidential aides to push local companies to donate some tens of billions of won to two nonprofit foundations including the K-Sports Foundation.

Shin said the decision to offer money to the foundation was made by the group’s former Vice Chairman Lee In-won who died in August.

Lee was found dead in an apparent suicide hours before he was to be questioned in the probe into a possible slush fund and financial irregularities in Lotte Group.

The retail conglomerate provided 1.7 billion won and 4.5 billion won to the scandal-ridden foundations -- K-Sports and Mir foundations, respectively -- last year.

In May this year, Lotte also provided an additional 7 billion won to the K-Sports Foundation, which was returned a day before prosecutors raided Lotte’s offices in June.

Shin denied allegations that the donation was made in return for favors to win business rights to operate duty-free shops in Seoul, saying “it’s totally unrelated.”

The chairman was one of the eight major business tycoons who were grilled by lawmakers in the hearing -- including  Samsung Electronics Vice Chairman Lee Jae-yong, Hyundai Motor Group Chairman Chung Mong-koo -- who were embroiled in the scandal which made President Park offer to resign conditionally last week.

By Park Han-na (hnpark@heraldcorp.com)