Lotte pledges jobs

The Myanmar Times - - International Business -

THE chair of scan­dal-hit re­tail gi­ant Lotte Group vowed yes­ter­day to re­store the com­pany’s im­age and promised a multi-bil­lion-dol­lar in­vest­ment and job cre­ation drive over the next five years.

Shin Dong-bin, to­gether with his fa­ther and brother, has been in­dicted on charges of tax eva­sion and em­bez­zle­ment fol­low­ing a lengthy cor­rup­tion probe.

The in­dict­ment came on top of a bit­ter, and very pub­lic feud be­tween Mr Shin and his older brother for con­trol of the coun­try’s fifth­largest fam­ily-run con­glom­er­ate.

“I deeply apol­o­gise for cre­at­ing con­cern among the peo­ple over the pros­e­cu­tors’ probe, as the fight over man­age­rial rights has not yet been set­tled,” Mr Shin told a tele­vised press con­fer­ence. The Seoul­based group, founded in Tokyo in 1948, 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 US$90 bil­lion.

“We have fallen short of peo­ple’s hopes and ex­pec­ta­tions,” Mr Shin said as he out­lined a busi­ness plan aimed at boost­ing the na­tional econ­omy.

“Al­though mar­ket con­di­tions are dif­fi­cult here and abroad, we will in­vest 40 tril­lion won [US$35 bil­lion] and newly hire 70,000 work­ers over the next five years”, he said.

The group will also re­ac­ti­vate a plan for an ini­tial pub­lic of­fer­ing of its ho­tel unit. Ho­tel Lotte, the coun­try’s big­gest op­er­a­tor of ho­tels and duty-free stores, shelved a po­ten­tial $4.5 bil­lion IPO it had planned for July be­cause of a cor­rup­tion probe into the unit.

Pro­ceeds from the IPO could help sort out the group’s con­vo­luted own­er­ship struc­ture based on com­pli­cated webs of cross share­hold­ings among sub­sidiaries and found­ing fam­ily mem­bers.

Mr Shin promised to “cre­ate a new Lotte” that would be “re­born” as a com­pany with a trans­par­ent gov­er­nance struc­ture. –

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.