[THE INVESTOR]
Lotte Group founder Shin Kyuk-ho and his son Shin
Dong-bin who is the group chairman have been banned from leaving South Korea, according to court sources on July 8.
The ban comes less than a month since the prosecution initiated an all-out probe into South Korea’s fifth-largest conglomerate on June 10 on charges of embezzlement and breach of trust.
Shin Kyuk-ho (left) and Shin Dong-bin (right)
Industry watchers said the move indicates that the authorities have gathered enough evidence to wrap up the case.
The prosecution is expected to call in the father and son as soon as they have finished questioning a handful of key executives who were at the core of the group’s management.
So far, the authorities have arrested Shin Young-ja, Dong-bin’s sister and head of Lotte Foundation, for taking bribes.
Lotte is formed mainly of unlisted affiliates, and they were recently found to have been engaging in various acts of malfeasance, mainly aimed at enriching the founding family and helping them create slush funds.
The company is also recorded as having the highest number of circular shareholdings among the nation’s top 65 industrial groups.
By Kim Ji-hyun (
jemmie@heraldcorp.com)