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Lotte loses 1 tln won in China over past 4 years

August 1, 2015
Lotte Group, South Korea's fifth-largest conglomerate, is mired in a family feud between the corporate founder's two sons who want to take over the leadership from their 93-year-old father, Shin Kyuk-ho. The retail and food giant has been building the Lotte World Tower in the southern Seoul to realize the founder's lifelong ambition, which is set to be the country's tallest structure upon completion. (Yonhap)

Lotte Group, South Korea’s fifth-largest conglomerate, is mired in a family feud between the corporate founder’s two sons who want to take over the leadership from their 93-year-old father, Shin Kyuk-ho. The retail and food giant has been building the Lotte World Tower in the southern Seoul to realize the founder’s lifelong ambition, which is set to be the country’s tallest structure upon completion. (Yonhap)

SEOUL (YONHAP) –South Korea’s fifth-largest conglomerate Lotte Group lost more than 1 trillion won (nearly $1 billion) from its operations in China and Hong Kong, data showed Sunday, lending weight to allegations by the owner family’s eldest son who is in a power struggle with his younger brother.

The China and Hong Kong-based subsidiaries of Lotte’s key listed units, including Lotte Shopping Co. and Lotte Confectionery Co., posted the loss from 2011 to 2014, the data compiled by market tracker CEO Score showed.

The shortfall, which in came at 92.7 billion won in 2011, continued to grow every year to reach 250.8 billion won in 2012 and 580.8 billion won in 2014, according to the data.

The owner family’s eldest son Shin Dong-joo, 61, had recently said his younger brother, Dong-bin, did not clearly state the losses to his father, group founder Shin Kyuk-ho.

Lotte Group, a family-controlled conglomerate whose businesses span from food to retail, has been mired in a power struggle between the two sons of 93-year-old Kyuk-ho as they seek to take the crown in the once-in-a-generation leadership change.

When the eldest son was fired from Japan-based Lotte Holdings in January, Dong-bin was believed to have the upper hand. The younger son, 60, who heads Seoul-based Lotte Group, was appointed chairman of the holding firm earlier last month.

Last week, the succession scenario took a twisted turn after the first son flew to Japan with his father and claimed in a Japanese media interview that his father dismissed his younger brother from his posts at the Japanese unit.