April 20, 2024

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[THE INVESTOR] Shin Dong-joo, the former vice chairman of Tokyo-based Lotte Holdings, has sold part of his stake in Lotte Shopping, a key affiliate of the retail giant in South Korea, according to industry sources on Feb. 22.

Shin, the eldest son of Lotte Group founder Shin Kyuk-ho, has sold a 6.88 percent stake in Lotte Shopping, or 1.73 million stocks, through a block deal, for 391 billion won (US$342 million). His stake in Lotte Shopping was reduced to 7.95 percent from the previous 14.83 percent, the source said.

Shin Dong-joo appears at prosecutors' office in September last year.

Shin has waged an uphill battle against his younger brother and Lotte Group Chairman Shin Dong-bin since last July to gain control of South Korea’s fifth-largest conglomerate via a series of lawsuits and boardroom coups, but his past attempts ended in failure. The estranged brother has repeatedly claimed that Lotte Shopping tried to hide its losses from Chinese businesses, trying to persuade shareholders that his younger brother was not fit for the top executive role.

The sources said the proceeds from the stock sale may be used to repay his debts and invest in new businesses in South Korea.

(theinvestor@heraldcorp.com)