SEOUL/TOKYO -- Lotte Group chairman Shin Dong-bin is expected to tighten his grip on the family-run business empire in both Korea and Japan as shareholders of the group’s key holding company supported his management proposals Monday.

In a counterattack on his elder brother’s offensive in the succession battle, chairman Shin has proposed measures to ensure a stable management structure and strengthen the group’s corporate governance.

“The shareholders agreed on the establishment of a stable management structure by current executives under the leadership of CEO Shin Dong-bin. They also hoped to enhance its management practices in accordance with law and principles and improve transparency,” Lotte Holdings said in a press release after the meeting, held at Imperial Hotel in Chiyoda, Tokyo, Monday.

The meeting has been regarded as a crucial vote for Lotte founder’s two sons ― the elder son Shin Dong-joo and his younger brother Dong-bin ― who have locked horns over succession for weeks. Both the brothers attended the meeting.

The meeting was held for “an early resolution of the array of incidents that occurred recently and prevent recurrence,” according to the press release.

As shareholders showed their support for the younger brother by backing his proposals, experts see the meeting as a big win that gave a boost to his power to lead the South Korean-Japanese conglomerate.

“Lotte in the both countries will try to enhance its respective performance while creating synergies to increase value in the global market,” Shin Dong-bin said in an official statement via email.

Lotte Holdings is at the apex of the complicated shareholding structure of the group, which was founded in Japan but does 80 percent of its business in Korea.

Amid worsening anti-Japan sentiment and controversies over chaebol business leaders, the chairman sought to cool down the public anger over the family feud.

“I believe management and family issues should not be confused. A company should be operated on the basis of law and order,” he said.

During the meeting, the shareholders agreed to appoint an outside director in the board to enhance transparency days after the Korean government said it would launch a thorough investigation into Lotte’s complicated governance structure to look into any illegal cash flows.

In response, the chairman pledged to dissolve 80 percent of the group’s circular shareholding structure by the end of the year on Aug. 11.

“Streamlining Lotte’s governance structure will take some years,” he said.

He also said he would push for the public listing of Hotel Lotte, which effectively controls Lotte’s business units in Korea.

By Park Han-na and Mun Jae-yeon (hnpark@heraldcorp.com) (munjae@heraldcorp.com)