Published : Sept. 21, 2016 - 16:44
The prosecution is likely to indict Lotte Group Chairman Shin Dong-bin for alleged embezzlement and tax evasion, but it remains undecided on whether to detain him or not.
After 18 hours of questioning, Shin left the prosecutors’ office in Seoul early Monday. He said he sincerely responded to the prosecution’s investigation without elaborating. The tycoon has reportedly denied allegations that he created slush funds and evaded taxes. Regarding suspicions that he shifted damages from failed M&A attempts to some Lotte affiliates, he pleaded not guilty, saying such cases were made through management decisions.
According to local reports, some prosecutors are raising their voices to seek a warrant for Shin’s arrest on charges of embezzlement and breach of trust amid growing concerns that the tycoon might lose his control over Lotte to executives in Japan.
A Tokyo-based Lotte Holdings holds more than 90 percent stake in Hotel Lotte, de facto holding company of Lotte’s operation in Korea.
Lotte Group in Korea has also reportedly requested the prosecution not to detain him, saying that Shin’s absence could also stir another power struggle within the owner family. Shin went through a series of bitter fights with his elder brother Shin Dong-joo, who called himself a legitimate heir to the nation’s fifth-largest conglomerate.
The prosecution has said it would take “external factors” into account for concluding the chairman’s fate. It plans to conclude the matter within this week.
By Cho Chung-un (christory@heraldcorp.com)