Lotte owners may not retain board seats

Shin Kyuk-ho Lotte Group General Chairman

Shin Dong-bin Lotte Group Chairman

By Kim Bo-eun

Investment consulting firm Sustinvest said Tuesday it advised institutional investors to oppose the appointment of Lotte Group General Chairman Shin Kyuk-ho as a board director of Lotte Shopping at the upcoming general meeting.

It advised against the re-appointment of Shin as a board director of Lotte Shopping, as well as the re-appointment of Lotte Group Chairman Shin Dong-bin as a board director of Lotte Chemical.

It cited these appointments would degrade the group’s value, following practices that tainted its reputation while the two were serving in the positions.

Lotte Shopping, where the senior Shin is a representative director, was fined some 60 billion won last year for tax evasion as well as unfair business practices that involved favoring its affiliates.

The junior Shin is also a board director of Lotte Shopping.