South Korea prosecutors to indict Lotte chairman, father and brother in corruption probe
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South Korean prosecutors will file charges on Wednesday against Lotte Group’s chairman, Shin Dong-bin, father and brother alleging they committed offences such as embezzlement and breach of trust worth hundreds of millions of dollars at the family-owned conglomerate, as reported on Tuesday.
Closing a wide-ranging probe into corruption that has convulsed Korea’s fifth-largest conglomerate, prosecutors will announce the results of their investigation into the retail-to-chemicals group on Oct. 19, a prosecution source with direct knowledge of the matter told Reuters.
The person, who requested anonymity as he was not authorized to speak to the media, declined to comment on whether Shin, 61, will be indicted.
Shin’s father, the 93-year-old Lotte Group founder Shin Kyuk-ho, and his brother Shin Dong-joo, will also be charged with offences such as tax evasion and breach of trust.
A Lotte Group spokeswoman declined to comment.
The probe has constricted management at Lotte, a household name in Korea, since it flared into public in June, derailing plans for billion-dollar deals and freezing expansion of a group with assets worth 103 trillion won (US$92 billion). It also served as the backdrop to the apparent suicide of a leading executive at the group.
While Shin would be charged with embezzlement of about 50 billion won and breach of trust involving about 175 billion won, he would not be arrested.
Last month the Seoul Central District Court turned down prosecutors’ request for an arrest warrant for Shin after he appeared at a court hearing, saying it didn’t view detaining the executive as necessary.
Once indicted, appeals processes could mean Shin potentially faces trial in court for many months.
A spokesman for the Seoul Central District Prosecutors’ Office could not be immediately reached for comment.
Questions & Answers
Q.What specific charges will the Lotte chairman and his family members face?
What specific charges will the Lotte chairman and his family members face?
Shin Dong-bin, his father, and brother will face charges including embezzlement and breach of trust. The chairman specifically faces embezzlement of about 50 billion won and breach of trust involving about 175 billion won.
Q.When will the prosecutors announce the full results of their investigation into Lotte Group?
When will the prosecutors announce the full results of their investigation into Lotte Group?
Prosecutors are set to announce the results of their investigation into the retail-to-chemicals group on October 19. They will file charges on Wednesday against the Lotte Group's chairman, father, and brother.
Q.Has the investigation had any significant impact on Lotte Group's business operations?
Has the investigation had any significant impact on Lotte Group's business operations?
Yes, the probe has constricted management at Lotte since June, derailing plans for billion-dollar deals. It has also frozen the expansion of the group, which holds assets worth 103 trillion won (US$92 billion).
Q.Will the Lotte chairman, Shin Dong-bin, be arrested?
Will the Lotte chairman, Shin Dong-bin, be arrested?
No, Shin Dong-bin will not be arrested. Last month, the Seoul Central District Court turned down prosecutors' request for an arrest warrant, stating that detaining the executive was not deemed necessary.