The Korea Herald

지나쌤

Head of Lotte Foundation arrested amid bribery scandal

By KH디지털2

Published : July 7, 2016 - 09:45

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Seoul prosecutors arrested the head of Lotte Foundation and daughter of the Lotte Group founder on Thursday for bribery as they widened their probe into the country's fifth-largest conglomerate.

The Seoul Central District Court issued a warrant to formally detain Shin Young-ja, 73, over suspicions she received bribes from the former chief of a local cosmetics brand who is at the center of a lobbying scandal that is rocking the country's legal sector.


"There are considerable reasons to suspect she committed the crime," the court said, acknowledging the necessity for the arrest.

The daughter of Shin Kyuk-ho is suspected of pocketing some 3 billion won ($2.5 million) in kickbacks from Jung Woon-ho, former chief of Nature Republic, and other companies in return for business favors in regards to Lotte's duty-free shops.

Prosecutors said she is also accused of siphoning off some 4 billion won of company assets from an import distribution firm owned by her son.

Shin became the first of the owner family to be put under detention amid the state prosecutors' full-fledged probe into the group's slush fund allegations.

Prosecutors' said they will grill Shin over diverse issues, from her personal corruption to other irregularities committed by the group. (Yonhap)