November 24, 2024

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[THE INVESTOR] Lotte Group Chairman Shin Dong-bin has been sued by his elder brother on charges of accounting irregularities of Lotte Shopping, sources familiar with the issue said on Oct. 11.

Shin Dong-joo, the former vice president of Tokyo-based Lotte Holdings, filed a complaint with South Korean prosecutors on Sept. 30, claiming Dong-bin and two other officials were involved in cooking the accounting books of Lotte Shopping, SDJ (Shin Dong-joo) Corp. said.
His latest legal action against his brother came only a day after a Seoul court turned down an arrest warrant on Dong-bin, who has been under probe on charges of embezzlement and other business irregularities.
 

Lotte Group Chairman Shin Dong-bin. The Investor

Dong-joo, the first son of Lotte founder Shin Kyuk-ho, has waged an uphill battle against his younger brother since last July to gain control of South Korea’s fifth-largest conglomerate via a series of lawsuits and board room 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 Dong-bin was not fit for the top executive role. 

Former vice president of Tokyo-based Lotte Holdings Shin Dong-joo. The Investor

In the complaint, Shin claimed Lotte Shopping omitted about 370 billion won (US$332.5 million) worth of losses on capital reduction in the company book from May 2013 to November 2015 in breach of accounting rules.

(theinvestor@heraldcorp.com)