SK, Lotte chiefs hope lifting of travel bans
By Park Jae-hyuk
SK Chairman Chey Tae-won
Lotte Chairman Shin Dong-bin
After the ruling on former President Park Geun-hye’s impeachment last Friday, all eyes are on SK and Lotte groups which the Constitutional Court identified as victims that suffered the infringement of their property and management rights.
In particular, whether or not the prosecution will let the two group’s chairmen go abroad is on people’s minds.
SK Group Chairman Chey Tae-won and Lotte Group Chairman Shin Dong-bin have been banned from overseas travel since last December over their alleged connections with the scandal involving Park and her confidant Choi Soon-sil.
The independent counsel at that time suspected the two chairmen had donated billions of won to the scandal-ridden Mir and K-Sports foundations to receive business favors, such as licenses to run duty free shops.
The two chaebol do not overtly complain but they seem to facing problems in their overseas businesses because the independent counsel turned its attention to their chiefs.
Industry officials said SK Group especially suffers setbacks in China. Chey, who had visited the country every month before the travel ban, is uncertain about attending the Boao Forum next week, which is often referred to as the Asian World Economic Forum.
Chey has proactively sought business and networking opportunities at such events in China.
Along the same lines, pessimistic views have also been aroused over SK Innovation’s efforts to acquire 50 percent stakes in Chinese chemical company Shanghai Secco as Chey is stranded in Korea.
“Our company’s global business has yet to face specific damages,” an SK Group spokesman said. “But it is clear we will face troubles in the long run, if the travel ban imposed on our chairman continues.”
Things might be worse for Lotte Group Chairman Shin. The conglomerate experiences a crisis in its Chinese venture after it provided land for the deployment of a U.S. anti-missile Terminal High Altitude Area Defense (THAAD) battery here.
Because of China’s retaliation centered on the nation’s fifth-largest conglomerate, Lotte is expected to suffer more than 50 billion won ($43.5 million) in sales losses, as more than half of Lotte Mart outlets operating in China have been temporarily closed. Its chocolate factory, which was jointly established by the U.S. confectionary giant Hershey, has also been ordered by Chinese authorities to suspend operations.
Lotte hoped its chairman acquainted with the Chinese authorities would help address the problem through face-to-face meetings, but he cannot do so due to the travel ban.
“We currently have no idea about lifting of our chairman’s travel ban,” a Lotte Group spokesman said. “Shin has been unable to take care of the management of the overseas affiliates.”
According to the immigration control law, the government can ban suspected criminals from traveling overseas for a month and can extend the period if necessary. The independent counsel delegated the authority to the prosecutors.
The public is split into two opposing camps on the issue. Some observers said the prosecutors should lift the bans imposed on the tycoons who are unlikely to flee from justice. However, opponents counter that the conglomerates are suspected of offering bribes to the former President.