Lotte Chairman vows to list hotel unit
Lotte Group Chairman Shin Dong-bin speaks to reporters at a groundbreaking ceremony for a chemical plant jointly owned with Axiall in Lake Charles, Louisiana, Tuesday (local time). In his first public appearance since June 10 when the prosecution began its investigation of Korea’s fifth-largest conglomerate, Shin said he will return to Korea late this month after attending a shareholders’ meeting of Lotte Holdings in Japan. / Yonhap
Embattled tycoon plans to return home soon to face probe
By Lee Hyo-sik
Lotte Group Chairman Shin Dong-bin has pledged to list the shares of Lotte Hotel on the local bourse by the end of this year, despite the widening prosecution investigation of his embattled conglomerate on suspicion of various illegal corporate activities.
Shin said he will return home late this month after attending a shareholders’ meeting of Lotte Holdings in Japan where he will face a no-confidence vote brought forward by his older brother Dong-joo, a bitter rival for succession of the conglomerate.
“I will do whatever’s necessary to take Lotte Hotel public this year,” the chairman told reporters at a groundbreaking ceremony for a chemical plant jointly owned with Axiall in Lake Charles, Louisiana, Tuesday (local time).
This was Shin’s first public appearance since June 10 when the prosecution launched a probe into Korea’s fifth-largest conglomerate.
“It is not that the plan to list Lotte Hotel has been put on hold indefinitely,” he said. “We will make every effort to take the hotel unit public late this year because we promised the public we would do so.”
On Monday, Lotte canceled the IPO on the Seoul bourse amid the escalating investigation. Chairman Shin has been seeking to list the shares of the group’s de-facto holding firm to reduce the influence of Japanese stakeholders and improve the group-wide governance structure.
The chairman apologized for causing concern over a host of allegations ranging from the creation of a slush fund to inter-subsidiary dealings and tax evasion.
“I am really sorry for causing grave concerns. I feel responsible (for what has happened to Lotte Group) and have ordered all Lotte units to fully cooperate with (prosecutors),” Shin said. “It is true that our business has been adversely affected to a certain extent. I hope that the ongoing investigation comes to an end soon.”
The chairman said he will return to Korea later this month after taking part in a shareholders’ meeting of Lotte Holdings in Japan, which holds a significant stake in Lotte Hotel and other Korean units.
“I will stay in the U.S. for several more weeks to take care of business,” he said. “As soon as the shareholders’ meeting is over, I will come home.”
Lotte Holdings in Japan has not set a date yet for its upcoming shareholders’ gathering but said it will be held sometime in late June. Dong-joo, former vice chairman of Lotte Holdings in Japan, said he will propose a vote of no-confidence to oust Dong-bin from the company’s board of directors.
Over the past year, Dong-joo has attempted to dismiss his younger brother several times but stakeholders of Lotte Holdings in Japan have sided with Dong-bin.
“I am not worried about the upcoming shareholders’ meeting,” the chairman said, expressing confidence that the shareholders will continue to support him.