Head of Lotte Foundation summoned over bribery scandal

SEOUL, July 1 (Yonhap) — The head of Lotte Foundation and daughter of the Lotte group founder was summoned by prosecutors Friday over allegations 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.

Shin Young-ja appeared before the Seoul Central District Prosecutors’ Office to face questioning over suspicions she received some 1 billion won (US$870,000) to 2 billion won in kickbacks from Jung Woon-ho, former chief of Nature Republic, from 2012 to 2015 in return for favorable placement in Lotte’s duty-free shops.

“I will tell everything to prosecutors,” the 74-year-old told reporters before entering the office, adding an apology.

Shin is among several suspects, including former and current state prosecutors and judges, who have been put under investigation over allegations of unlawfully peddling their influence for Jung in return for money.

The 74-year-old is also suspected of receiving similar bribes from other companies.

Prosecutors said they will grill the foundation chief over whether she actually received the kickbacks and whether she gave business favors to the firms in return.

The daughter of Shin Kyuk-ho is the first to be summoned among the owner’s family members who have been mired in a corruption scandal. Prosecutors have been widening their probe into Lotte, the country’s fifth-largest conglomerate, over slush funds allegations.

Shin Young-ja, the head of the Lotte Foundation and daughter of the Lotte Group founder, enters the Seoul Central District Prosecutors’ Office on July 1, 2016, to face questioning over allegations she received bribes from the former chief of a cosmetics brand Nature Republic. Prosecutors suspect she received some 1 billion won (US$870,000) to 2 billion won of kickbacks from Jung Woon-ho from 2012 to 2015, in return for a favorable placement in Lotte’s duty-free shops. (Yonhap)