[THE INVESTOR] Lotte Homeshopping, the TV retail channel of Lotte Group, is facing a staff exodus, industry sources said on Aug. 18.

Major headhunting service providers are said to have been flooded with resumes of Lotte Homeshopping employees since mid-June, when the prosecution launched a full-fledged probe into irregularities involving the renewal of its business license last year.

“It seems that Lotte Homeshopping employees are scrambling to trying to pursue new jobs, believing that the company has no future due to the scandals,” a headhunting company official said.

Lotte Homeshopping has been under prosecution probe on suspicions that it intentionally cut the number of executives and employees implicated in a bribery scandal to renew its channel license for another three years in April 2015, which was discovered by state auditors in February.

In mid-July, prosecutors summoned Lotte Homeshopping CEO Kang Hyeon-gu for questioning over his role in the case. Prosecutors suspect Kang created slush funds and directed company officials to give kickbacks to bureaucrats in the process.

(theinvestor@heraldcorp.com)