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| Lotte Group Chairman Shin Dong-bin, right, attends the Global Summit of the Consumer Goods Forum in Dublin, Ireland, June 22. Korea Times file |
By Lee Kyung-min
Pardoned Lotte Group Chairman Shin Dong-bin is expected to accelerate the conglomerate's business presence overseas, lifted by cleared legal and corporate compliance issues that global investors remained uneasy about, according to market watchers, Sunday.
Shin was sentenced to two and a half years in prison in October 2019, following his conviction in a protracted corruption trial involving disgraced former President Park Geun-hye.
His sentence was suspended for four years, allowing him in principle to continue making decisions for the firm.
However, years of legal issues slowed down one of the country's leading conglomerate's business drives, blunted by Shin's travel bans leading to stalled talks on mergers and acquisitions (M&As).
Growth
"We are grateful for the pardon," Lotte Group said in a statement immediately after President Yoon Suk-yeol pardoned the chairman on the occasion of Korea's Liberation Day on Aug. 15.
"Chairman Shin and Lotte employees will continue to make efforts for the county to overcome a slew of uncertainties from within the country and around the world. The group will create an ecosystem and make devoted efforts to revitalize local economies," it added.
The pledges are likely to be illustrated by 37 trillion won ($28 billion) in investments over the next five years, according to an announcement made in May.
Lotte Biologics, a biological contract development manufacturing organization (CDMO) affiliate of the group, plans to spend 1 trillion won to build a manufacturing plant in the country.
Lotte Aluminum, a chemical manufacturing affiliate of the group, recently doubled the production capacity at its cathode foil manufacturing plant in Hungary. The affiliate expects the larger output of the key component of rechargeable batteries will help expand its market presence in European countries.
Further advancing the move are ongoing efforts to establish a joint venture with a U.S. lithium metal anode material maker, a collaboration that the firm says will help develop core technologies.
Also among the top business agenda items is drumming up support for the southern port city of Busan to host the 2030 World Expo.
Shin attended the Global Summit of the Consumer Goods Forum in Dublin, Ireland, in June to promote Korea's aim to host the large international event.
"The presidential pardon will lead to a breakthrough in the country's business activities and growth momentum, bogged down for years by legal issues involving top decision-makers," an industry official said. "Investments will pick up speed, leading to an overall revitalization of the country's economy."
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