In a bold move apparently to soothe antipathy against his businesses and to reassure the public that he is fit for the helm of the 90 trillion won ($76 billion) business empire, Lotte Group chairman Shin Dong-bin agreed to be grilled at the National Assembly’s annual audit slated for Sept. 17. 

He also sought to deliver his promise of listing Hotel Lotte by winning shareholders’ approval while kicking his elder brother off the board to consolidate his regime.

“The chairman will sincerely answer to all questions,” a Lotte spokesman said Friday, confirming Shin’s appearance at the public hearing. Shin is expected to be questioned about the legitimacy of his control in the gigantic company with 81 affiliates in Korea when he has only 2.41 percent of company shares. His plans for bringing transparency to the complicated and opaque governance structure of Lotte and enhancing fair trade among others will also be on the agenda.

“I don’t think it is a bad decision at all,” an industrial pundit said. “If he shows sincerity he might as well gain people’s trust. That is a huge step forward from his causing a scene earlier this year by locking horns with his elder brother over the chairmanship,” he added.

In order to execute his pledge to dilute Japanese holding companies’ influence on Hotel Lotte, the de facto holding company of Lotte Korea -– the portion stands at 99.28 percent — Shin held a closed shareholders’ meeting on Thursday and approved the initial public offering plan for the hotel. Daewoo Securities, Merrill Lynch and Citigroup were appointed to govern the process.

Shin Dong-bin also ousted the loser of the fraternal competition. The shareholders’ meeting decided to sack Dong-bin’s elder brother and Lotte’s major shareholder Shin Dong-joo from the company’s registered executive position. Dong-joo now has no foothold in Lotte Group Korea and Japan apart from shareholding.

By Bae Ji-sook (baejisook@heraldcorp.com)