[THE INVESTOR] A Seoul court on Sept. 29 rejected the prosecutors’ request for a warrant to formally arrest Lotte Group Chairman Shin Dong-bin over embezzlement and breach of trust charges.

The Seoul Central District Court turned down the request, saying it’s difficult to recognize the need for arresting the 61-year-old chairman of the retail giant.

Prosecutors have accused Shin of orchestrating a series of shady deals at the group‘s affiliates, as well as giving large stipends to the owner’s family for just being listed as board members of the conglomerate‘s Korean and Japanese branches.

 

Authorities suspect the amount of money transacted illegally under Shin’s direction to hover around some 170 billion won (US$154 million).

“I think our group has a lot of shortcomings,” Shin told reporters, leaving the Seoul Central District Prosecutors’ Office.  

“I will take responsibility for overcoming them.”

Prosecutors said they will review whether to reapply for the writ.

(theinvestor@heraldcorp.com)