Group founder and the current chairman are likely to be indicted without detention over a host of allegations including embezzlement.
According to reports, group founder Shin Kyuk-ho and Chairman Shin Dong-bin
are likely to be indicted without detention on Oct. 18.
The prosecutors’ office has been investigating Lotte Group since June 10, and has turned up evidence of embezzlement, tax evasion and other corrupt business practices.
Dong-bin, who pushed aside his elder brother Dong-joo
in the fight for control of the group, is accused of embezzling hundreds of billions of won from the group. Related article : 5 members of Lotte founding family may face indictmentLotte chairman sued by brother for accounting fraud
The elder Shin is accused of evading 600 billion won (US$531.83 million) in taxes in the process of giving shares to his common-law wife Seo Mi-kyung and his daughter Shin Young-ja.
Sources said prosecutors‘ decision to end the investigation without detention came as the prolonged probe on the country’s fifth-largest conglomerate may be having an adverse impact on the national economy.
By Choi He-suk (firstname.lastname@example.org