Prosecution raids 10 Lotte affiliates over slush funds

By Ko Dong-hwan

The prosecution raided 10 affiliates of Lotte Group on Tuesday morning in a widening investigation into the conglomerate’s alleged slush funds.

The Seoul Central Prosecutors’ Office said it raided 15 places, including 10 Lotte affiliates. They included Lotte Engineering & Construction, Lotte Chemical, Lotte Chilsung Beverage and Lotte.com.

On Friday, prosecutors raided the headquarters of the group and affiliates, including Hotel Lotte Co.

They are investigating the alleged creation of slush funds, inter-subsidiary dealings, alleged tax evasion and other activities. Prosecutors suspect the group created slush funds while making transactions between affiliates.

Shin Kyuk-ho established the conglomerate in the 1960s.

The investigation may widen to include allegations that Lotte lobbied government officials in the previous administration to get approval for the construction of the nation's tallest building, the Lotte World Tower in Seoul.