Lotte stumbling on secrecy

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Sun, November 27, 2022 | 07:57

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Lotte stumbling on secrecy

오늘 롯데가 제삿날…신동빈 귀국 연기

Posted : 2015-07-31 17:20

Updated : 2015-08-02 09:53

Shin Sun-ho, the younger brother of Lotte Group founder Shin Kyuk-ho, who runs the noodle maker Sansas in Japan answers questions from reporters when he emerges from the house of Shin Dong-joo, former vice chairman of Lotte Holdings in Japan after attending memorial services for the late father of Kyuk-ho on Friday evening. / Yonhap

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By Park Si-soo

The escalating feud between the two sons of the Lotte Group founder has laid bare the outdated, opaque management system underlying the nation's fifth-largest family-controlled chaebol.

Officials and analysts say the secretive way the conglomerate is run has been a key element behind the group's growth in the past, both in Japan and Korea.

However, they believe it no longer works and instead poses a threat to managerial stability and sustainable growth.

Unlike other major companies in Korea, Lotte's holding company and major affiliates remain unlisted, meaning key corporate information is veiled in secrecy.

What's known to the public, in terms of governing structure is that Lotte Holdings in Japan governs the entire group through a web of cross-shareholdings.

Lotte Holdings is also under the control of a paper company called Kwang Yoon Sa, which holds the biggest stake of 27.65 percent in Lotte Holdings.

The Lotte Group founder Shin Kyuk-ho is known to have a major stake in Kwang Yoon Sa, but rumors have circulated that he handed some of his shares over to his two sons, though it's uncertain how much.

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It is said that his eldest son Shin Dong-ju holds a 30 percent stake in the paper company, and second son Dong-bin has 25 percent.

Analysts and industry officials say such secretive management and ownership structure would leave top managers unchecked in the decision-making process, allowing the group to be vulnerable to higher risks of misjudgment.

Lee Sang-hun, an analyst at Hi Investment and Securities, raised concerns that the secretive management could dent Lotte's growth potential.

"The secretive and closed management style is a double-edged sword," Lee said. "On the one hand, the chief executive can make a decision quickly because he or she will be unchecked in the decision-making process. On the other, unchallenged leadership will leave the company exposed to managerial risks."

Another analyst said the secretive management might have contributed to Lotte's rise to the nation's fifth-largest conglomerate.

At the same time, it has prevented the group from drawing greater investment, he said.

"Several years ago, Lotte attempted to raise funds by issuing corporate bonds," said the analyst asking not to be named. "Back then, the financial regulator said it would approve the issuance on the condition that Lotte discloses detailed information about its governing structure. Lotte refused to do so and accordingly the regulator didn't approve the bond issuance."

The analyst said there were many other cases that Lotte had to abandon due to its opaque management that fails to meet regulatory standards.

Kim Sang-jo, an economics professor at Hansung University, said the limited information will end up hurting Lotte's competitiveness and growth.

"Let's imagine that you are a company's owner and you share only a limited amount of information about your company," he said. "In this situation, who do you think will willingly invest in your company? And who do you think will work for your company with high commitment?"

Meanwhile, Dong-joo and his supporters disclosed a recording of his father Kyuk-ho saying Dong-bin should be foreced to step down. The Lotte founder expressed his anger when he heard that Dong-bin didn't resign despite his "order" to leave.

He urged Dong-joo to take action againt Dong-bin who intended to keep the founder from having a say in management decisions.

오늘 롯데가 제삿날…신동빈 귀국 연기

가족회의서 경영권 분쟁 논의…'신동빈 대 롯데 일가' 구도 될 듯

롯데그룹 후계를 둘러싼 다툼이 장기화할 조짐을 보이는 가운데 31일로 예상되는 신격호(94) 롯데 총괄회장 일가의 가족회의가 중대 고비가 될 것으로 보인다.

가족회의가 열릴 것으로 보는 이유는 신 총괄회장의 부친인 신진수씨의 제삿날 음력 6월 16일이 양력으로 따지면 이날이기때문이다.

신 총괄회장의 부인 시게미쓰 하쓰코(重光初子.88)씨가 30일 김포공항을 통해 입국한 것도 시아버지 제사에 참석하기 위한 목적으로 알려졌다.

제사는 통상 신동주 전 일본롯데홀딩스 부회장의 서울 성북동 자택에서 열려온 것으로 전해졌다. 그러나 올해의 경우 롯데호텔에서 열릴 수 있다는 관측도 있다.

신 총괄회장의 거동이 불편한데다, 신 전 부회장이 취재진때문에 숙소인 소공동 롯데호텔에서 빠져나오기 어려울 것으로 보여서다.

통상 제사를 모시는 자리에 일가족이 참여해 식사를 함께하면서 자연스럽게 의견을 나눈다는 점에서 최근 롯데그룹 경영권 분쟁과 관련해 가족회의도 이뤄질 것으로 예상된다.

신동빈 롯데그룹 회장은 당초 이날 예약했던 항공편을 취소하고 귀국일정을 연기했다. 따라서 제사에도 참석하지 않는다.

신 회장은 평소에도 종교·철학적인 이유로 제사에 참석하지 않아왔다는 게 롯데그룹의 전언이다.

신 회장이 귀국을 연기함에 따라 제사를 계기로 한 가족회의는 '반(反) 신동빈' 전선으로 흘러갈 개연성이 있다. 참석자들 상당수가 지난 27일 신 전 부회장의 `1일 천하' 쿠데타에 가담한 인물일 수 있기때문이다.

주목되는 인물은 신 총괄회장의 셋째 남동생으로, 장남 신 전 부회장의 '일본행 쿠데타'를 도운 것으로 알려진 신선호(82) 일본 산사스 사장이다. 그가 참석한다면 다시 한번 신 전 부회장의 일본롯데 경영권 승계를 주장할 것이라는 추정도 가능하다.

역시 일본에 같이 갔던 장녀 신영자(73) 롯데복지재단이사장과 5촌 조카 신동인(69) 롯데자이언츠 구단주 직무대행도 제사에 참석할 것으로 보인다.

신 회장은 일본 롯데홀딩스 주주총회에서 신 전 부회장과 표 대결을 펼칠 것에 대비해 일본롯데의 이사와 주주를 관리하는데 시간이 더 필요하다고 판단한 것으로 알려졌다. (연합뉴스)

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