 |
| Lotte Group Chairman Shin Dong-bin speaks at Gimpo International Airport in western Seoul, Monday, after arriving from Japan. He apologized for the Grand slam escalating family feud with his father and group founder Shin Kyuk-ho, and his older brother Shin Dong-joo. / Yonhap |
Younger son calls father's dismissal order 'not legally binding'
By Lee Hyo-sik
Shin Dong-bin, the youngest son of Lotte Group founder Shin Kyuk-ho, made it clear Monday he will hold onto the group's operations both in Korea and Japan.
Upon returning from Japan, he issued an apology for the family feud engulfing the nation's fifth-largest conglomerate and pledged to resolve the row with his father and elder brother Dong-joo over managerial control of the group.
Dong-bin, who holds the titles of Lotte Holdings Japan CEO and Lotte Group chairman in Korea, said his father's order to dismiss him from the top managerial posts was "not legally binding."
Asked about his father's mental capacity to make key management decisions, he declined to comment.
Since the internal conflict surfaced on July 28 when Dong-bin fended off a coup attempt by Dong-joo, he has been staying in Japan to consolidate his control of the holding firm.
"I am really sorry for what has happened," Dong-bin said after arriving at Gimpo International Airport in western Seoul, Monday afternoon.
"I have done my best with my father, company employees, shareholders and the public to grow Lotte into what it is now," the chairman said. "My role is to normalize the group's operations at home and abroad in accordance with the founder's sprit. I will also try harder to contribute to developing the Korean economy."
When asked about Lotte Holdings' shareholder structure and how many shares he has secured, Dong-bin declined to comment.
"I don't remember exactly when I met my father the last time. But I think I met him on July 8 or 9," he said, declining to comment on the founder's health status. "I will get together with my father and my brother soon to resolve any problems," Dong-bin added.
When asked about when Lotte Holdings' shareholders will meet, he said nothing has been decided yet, adding that the board of directors will decide on the date in accordance with company rules.
The chairman stressed Lotte Group is a Korean company and its Korean units generate more than 95 percent of Lotte's entire revenue.
Regarding the documents that his older brother Dong-joo unveiled last week, which showed the group founder ordered his dismissal, Dong-bin said the papers were not legally valid, indicating that he has no intention to step down from his posts.
Reconciliation possible?
According to Lotte Group officials, Dong-bin met with his ailing father at the Lotte Hotel, Monday, to explain his side of the story.
"What he did first was to meet Kyuk-ho to resolve any misunderstanding between them," a senior group executive said.
"The meeting between the two lasted only five minutes. They exchanged greetings first and talked about personal matters," the executive said. "They did not touch on the management disputes and other sensitive matters as far as I know."
He added Dong-bin will devote most of his time to managing group units and reassuring tens of thousands of Lotte employees that he is in full control.
An executive at one of the country's major business associations, who declined to be named, said that Dong-bin will try to persuade his father and other family members that the group will be better off under his leadership.
"I think he will do everything he can to maintain managerial control. He has no intention of allowing his older brother to take his place," the executive said. "If his father and other family members do not agree, everything will go to the scheduled shareholders' meeting at Lotte Holdings."
Lotte Group said Dong-bin has secured more than half of Lotte Holdings' shares, adding that he could secure as much as 70 percent by the time company shareholders meet.
However, Dong-joo claimed he has secured a two-thirds stake in Lotte Holdings, vowing to replace Dong-bin and current members of the board of directors who support his younger brother.
Meanwhile, Dong-joo changed his plan of leaving Korea, Monday. Only his wife flew back to Japan.
The former vice chairman of Lotte Holdings had initially planned to head back to Japan after spending a week here during which he mostly staged a publicity war against his younger brother.
Dong-joo was previously expected to go to Japan to contact shareholders of Lotte Holdings ahead of the scheduled shareholders' meeting because he desperately needs allies against his powerful younger brother who has filled the board of directors at Lotte Holdings with his confidents.
His unexpected move indicates that he is remaining in the country to talk with his younger brother. He could also be staying longer to prevent Dong-bin from meeting his father.
Over the past week, Dong-joo has been staging a publicity campaign against his younger brother while the latter was in Japan.
In interviews with terrestrial broadcasters, he unveiled the documents allegedly signed by his father ordering the dismissal of Dong-bin and other board members. He also made public video clips where Kyuk-ho disapproved of Dong-bin as Lotte Group chairman.
Lotte Holdings, which has a 19.1 percent stake in Lotte Hotel, is the de facto holding company of Lotte Group in Korea. Lotte Hotel holds an 8.8 percent share in Lotte Shopping and has a considerable stake in other key units.
