Lotte Group reportedly tried to lower the amount of donations demanded by a foundation closely linked to Choi Soon-sil, before finally paying it 7 billion won ($6.13 million) in May.

According to Lotte officials quoted in local news reports, the group engaged in three months of negotiations with the K-Sports Foundation, which was allegedly used to raise money for Choi, a close friend of President Park Geun-hye.

News reports said the group eventually agreed to pay the amount, as pressure from the foundation increased, such as through direct demands by Ko Young-tae, an alleged associate of Choi.

Lotte reportedly said that So Jin-se, the group’s public relations director, and Lee Seok-hwan, who is in charge of corporate social responsibilities, first came into contact with the K-Sports Foundation, which was reportedly founded by Choi in March.

The K-Sports Foundation reportedly asked for a meeting with Lotte to discuss matters related to “fostering elite sports,” and the foundation’s former Secretary-General Jung Hyun-sik visited the group’s headquarters on March 17.

The foundation allegedly demanded that Lotte pay for the construction of a facility to promote “unpopular but elite” sports such as badminton and horseback riding on land owned by the Korean Olympic Committee. Choi’s daughter Chung Yoo-ra is suspected of receiving illegal corporate sponsorship and preferential treatment from her alma mater for her equestrian education.

At the time, the foundation demanded Lotte pay 7.5 billion won, but lowered it to 7 billion won after Lotte protested that the amount was too high. Lotte also reportedly suggested paying half of this sum, or 3.5 billion won.

As pressure mounted, Lotte reportedly collected 7 billion won from six of its affiliates and wired the money to the K-Sports Foundation in May.

For unidentified reasons, the K-Sports Foundation returned the 7 billion won 10 days later, saying they were having problems securing the land for the envisioned facility.

Industry sources were quoted as saying that this may have been triggered by the prosecution’s separate probe into the Lotte Group owner family’s corruption charges, which began in June.

A Lotte official, speaking on condition of anonymity, reportedly denied direct influence from Cheong Wa Dae, but said they have been aware that the foundation’s establishment was supported by the presidential office.

By The Korea Herald (khnews@heraldcorp.com)