Fam­ily feud reignites at Lotte Group

The Myanmar Times - - International Business -

THE elder brother of South Korea’s Lotte Group chair has filed a law­suit against his younger sib­ling for al­leged ac­count­ing fraud, reignit­ing a bit­ter fam­ily feud over a stake in the busi­ness em­pire.

“We sub­mit­ted a com­plaint to the pros­e­cu­tors’ of­fice on Septem­ber 30,” Thomas Hong, spokesper­son for Shin Dong-joo, for­mer vice pres­i­dent of Lotte Hold­ings, told AFP.

Mr Hong said Mr Shin ac­cused Lotte chair Shin Dong-bin and two other of­fi­cials of breach­ing ac­count­ing rules by omit­ting 370 bil­lion won (US$333 mil­lion) worth of losses on cap­i­tal re­duc­tion posted by Lotte Shop­ping from May 2013 to Novem­ber 2015.

Mr Shin claimed that Lotte Shop­ping de­lib­er­ately waited to an­nounce the loss – the first deficit posted by the firm since 2006 – and that the net loss is larger than the re­ported amount.

In a reg­u­la­tory fil­ing in Fe­bru­ary this year, Lotte Shop­ping an­nounced 346.1 bil­lion won in net losses in 2015 due to a re-eval­u­a­tion of its busi­ness rights in China.

An of­fi­cial at Lotte Group said that the com­pany was un­aware of the com­plaint and it will take “nec­es­sary coun­ter­mea­sures” after re­view­ing the case.

The com­plaint was filed a day after a Seoul court dis­missed an ar­rest war­rant on Shin Dong-bin, who had been un­der in­ves­ti­ga­tion on em­bez­zle­ment charges.

The Seoul-based group, founded in Tokyo in 1948 by Shin Kyuk-ho, has a vast net­work of busi­nesses in South Korea and Ja­pan in­clud­ing depart­ment stores, ho­tels and pro­cessed food, with com­bined as­sets val­ued at more than $90 bil­lion.

The group has made head­lines since last year be­cause of a bit­ter feud be­tween the founder’s two sons who locked horns over the con­trol of the busi­ness em­pire and launched a se­ries of per­sonal and very pub­lic at­tacks on each other. –

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