“I feel ashamed and sorry for making people concerned over a family matter,” said Shin in a heavy Japanese accent, bowing his head. “I think there will be no more (family feud),” he said during the nationally televised session.

The chairman, however, ruled out the possibility of separating Lotte’s operations in Korea and Japan, and denied speculations that he would delegate the management of its Japan unit to his elder brother -- Shin Dong-joo.

“I don’t think it’s appropriate to split Lotte’s operations in Korea and Japan because I believe operating them together would have synergy effects and contribute in raising shareholder value,” said the chairman holding a microphone with shivering hands. He also vowed to clean up 80 percent of the cross-shareholding structure by the end of October.

“We formed a task force to improve the governance structure and restore the brand image,” Shin said.

The chairman faced a barrage of questions by lawmakers from rival parties as he was called in to testify over Lotte’s shady governance structure laid bare after a recent mud-slinging family feud. He was the first chaebol head grilled at the parliament, making a rare scene of a business tycoon responding to lawmakers’ questions, amid growing calls for strengthening state rules to improve the transparency of large businesses.

Shin was called in to attend the parliamentary audits several times in the past. But it was the first time that he accepted the call and took the stand. It is mandatory for those appointed as witnesses to the parliamentary audit sessions to attend without due reasons. Many South Korean business leaders have rejected the calls so far, citing business trips, and paid fines instead.

Shin’s decision to face lawmakers’ questions was seen as an attempt to defuse mounting criticism against his group and to reassure the public that he is qualified for the helm of the 90 trillion won business empire.

Having the high-profile businessman on the witness stand came as lawmakers from both rival parties struggle to attract public attention at the ongoing audit session -- the last session before the general elections next year. But they have been criticized for lacking preparation and asking lightweight questions that further turned voters’ interest away.

Lawmakers tossed many questions in a dire attempt to corner the business tycoon. But most of them fizzled out as they asked about plans already announced by Shin or his company. Some of lawmakers ended up simply wishing Shin well.

On disputes over his nationality, Shin said he would maintain his Korean citizenship and reiterated that Lotte is a Korean company bound to pay taxes accordingly to Korean commercial law and a workplace operated by Korean employees.

He also said that Lotte Hotel would go public by listing on the Korean stock market as part of efforts to bring transparency to the governance structure of the group. The plan was approved by his father, Shin Kyuk-ho, with whom he had an ugly succession battle a month ago, he said.

The audit was held after Shin ousted his brother after a bitter fraternal competition and won control over the nation’s fifth-largest conglomerate. The shareholders meeting decided to sack Dong-joo, and also stripped him from the company’s registered executive position -- leaving him with no foothold in Lotte Group Korea and Japan apart from shareholding.

By Cho Chung-un (christory@heraldcorp.com)