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Lotte union leaders back founder’s younger son

August 6, 2015
Lotte founder Shin Kyuk-ho (L); Shin Dong-joo (C) and Shin Dong-bin (R) (Yonhap file photo)

Lotte founder Shin Kyuk-ho (L); Shin Dong-joo (C) and Shin Dong-bin (R) (Yonhap file photo)

SEOUL, Aug. 5 (Yonhap) — Union leaders at Seoul-based Lotte Group affiliates on Wednesday threw their support behind Chairman Shin Dong-bin amid a fierce family feud over control of the sprawling business empire.

“We send our utmost support and trust to Chairman Shin Dong-bin,” the 19 leaders of unionized workers at Lotte affiliates said in a joint statement. “We will do our best to help Shin Dong-bin, who stably and successfully leads 100,000 employees at some 80 affiliates in normalizing operations.”

Lotte, the country’s fifth-largest conglomerate, is embroiled in an ownership dispute involving founder Shin Kyuk-ho, 93, and his two sons, Dong-ju and Dong-bin, who each had controlled the company’s operations in Japan and Korea until early this year. While Dong-ju was ousted from key positions at Japanese units, Dong-bin took the helm at Japan-based Lotte Holdings, the group’s holding firm.

The seemingly smooth power transition took a nasty twist late last month when Kyuk-ho and Dong-ju tried to dethrone Dong-bin from Lotte Holdings. In turn, Dong-bin demoted his father from general chairman of Lotte Holdings to honorary chairman, claiming that his age has weakened his mental and physical capacity.

The labor union leaders follow the heads of Lotte Group units in Korea who have already voiced their support of Dong-bin.

On Tuesday, the heads of 37 Lotte units issued a statement, saying, “We feel a sense of responsibility, and we are sorry for causing public concern over this unsavory controversy.

“We support Chairman Shin Dong-bin, who has led Lotte Group and showed management accomplishments. We also respect founder Shin Kyuk-ho, who has contributed to the economic development of South Korea.”

The family feud, which has laid bare the group’s murky ownership structure and sparked anti-Lotte sentiment, again sent shares of Lotte affiliates plunging on the Seoul bourse on Wednesday.

Lotte Shopping, the key retail affiliate, tumbled 6.17 percent, while Lotte Confectionery and Lotte Chilsung Beverage fell 2.13 percent and 2.83 percent, respectively.

One Comment

  1. lotte chemical pta workers union

    September 12, 2015 at 2:08 AM

    ENVIRONMENT

    Lotte Pak Pta Ltd has got the certificate ISO International Standard organization of SHE Safety health & Environment but they did not follow the rules which should be followed under this verification indivadly violating the law which was madder by ISO & SHE besides all that they are damaging the health of the ourandand people and wasted Chemical was shoran in the sea which is another violation of low kindly take notice of all these thing it seen like a lobby of the other country was wanted to destroy us.

    Note

    All Evidences of accident record is available with CBA Union General Secretary (Tariq) which any time produce to Media or any institution for taking action.

    Reply