The chief of South Korean retail giant Lotte Group owns relatively small stakes in the group’s key affiliates compared to those held by his family members amid an ongoing power struggle with his brother over the country’s No. 5 conglomerate, data showed Tuesday.
Lotte Group Chairman Shin Dong-bin and his elder brother Dong-joo have been involved in a succession feud with the latter set to wage a legal battle against his younger brother to win back control over the conglomerate whose business portfolio ranges from food to retail, mostly based in South Korea and Japan.
According to the data compiled by conglomerate-tracking research firm Chaebul.com., the Lotte chairman holds 13.46 percent in Lotte Shopping Co., while other family members own a combined 15.31 percent.
Dong-bin owns a 5.34 percent stake in Lotte Confectionery Co., but his elder brother and other family members hold a comparable 13.31 percent.
The data showed that Dong-bin has higher stakes in just four affiliates such as Lotte Chemicals Co., than those held by his family members.
Industry watchers say that the Lotte chief should take a tight grip on Hotel Lotte, owned by the group’s affiliates and Japan-based Lotte Holdings, in order to solidify his presence.
Hotel Lotte owns 8.83 percent in Lotte Shopping, 3.21 percent in Lotte Confectionery Co., 12.68 percent in Lotte Chemicals and major stakes in other key affiliates.
Meanwhile, Dong-joo said earlier this week that he will seek to sack his younger brother from the board of Kojunsha, the virtual holding firm of Lotte Group.
Kojunsha is at the apex of the group’s entire governance structure with a 28 percent stake in Lotte Holdings, the group’s holding firm. The group’s business spans from luxury hotels to amusement parks, mostly located in South Korea and Japan.
Dong-bin has a 38.8 percent stake in Kojunsha, and their father and group founder Shin Kyuck-ho owns 0.8 percent.
But Lotte Group said even if its chairman is removed from Kojunsha’s board, it would have little impact on the group management.
Lotte, a retail giant, has been mired in the family squabble involving the founder and his two sons, who are sparring to bolster their grip on the group.
In August, Shin Dong-bin bagged a landslide win at a hastily arranged shareholders meeting for Lotte Holdings, in what was thought to be the end of the family squabble. (Yonhap)
