April 19, 2024
The Boardroom
Lotte chief retains grip on management
[THE INVESTOR] Lotte Group Chairman Shin Dong-bin is expected to maintain his control over the retail giant as he has secured full backing from a key Japan-based unit, industry sources said on May 22.
Shin’s leadership of Korea’s fifth-largest conglomerate has been in jeopardy as he is facing ongoing trials in Seoul for alleged involvement in an influence-peddling scandal that led to the ouster of former President Park Geun-hye.
Despite the turmoil, the board of directors of Tokyo-based Lotte Holdings, a pivotal company in Lotte‘s governance structure, passed a resolution on May 1 to continue to uphold Shin as the conglomerate’s head, according to Lotte Group in Seoul.
The decision gives Shin, 62, firm grounds to tighten his grip on the business empire with 90 affiliates, and an upper hand in the prolonged power struggle with his elder brother Shin Dong-joo, who has challenged him for the top post of the 50-year-old family business founded by their father.
Lotte Holdings President Tsukuda Takayuki confirmed the decision in an interview with Japanese media last week, saying that the management won’t be swayed by Shin’s indictment although it may bring some temporary setback.
By Alex Lee and newswires (alexlee@heraldcorp.com)
Shin’s leadership of Korea’s fifth-largest conglomerate has been in jeopardy as he is facing ongoing trials in Seoul for alleged involvement in an influence-peddling scandal that led to the ouster of former President Park Geun-hye.
Despite the turmoil, the board of directors of Tokyo-based Lotte Holdings, a pivotal company in Lotte‘s governance structure, passed a resolution on May 1 to continue to uphold Shin as the conglomerate’s head, according to Lotte Group in Seoul.
The decision gives Shin, 62, firm grounds to tighten his grip on the business empire with 90 affiliates, and an upper hand in the prolonged power struggle with his elder brother Shin Dong-joo, who has challenged him for the top post of the 50-year-old family business founded by their father.
Lotte Holdings President Tsukuda Takayuki confirmed the decision in an interview with Japanese media last week, saying that the management won’t be swayed by Shin’s indictment although it may bring some temporary setback.
By Alex Lee and newswires (alexlee@heraldcorp.com)
