April 19, 2024

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[THE INVESTOR] The corruption probe into Lotte Group continues to expand with the prosecution raiding Lotte Chemical Corp. and Lotte Engineering and Construction on June 14.

In the early hours of Tuesday, the Seoul Central District Prosecutors’ Office raided the two companies in southern Seoul. The prosecution, which conducted a mass raid on 17 Lotte-related locations on June 10, is reported to have reasons to believe that the two companies were instrumental in the founding family’s illegal activities. 

Investigators enter a Lotte Group company`s office in Seoul during the June 10 raid. The Investor

The prosecution believes that group founder Shin Kyuk-ho and his two sons Shin Dong-joo and Shin Dong-bin were central to a massive embezzlement scheme. Authorities estimate the damages dealt to the group through embezzlement and other malpractice to be about 300 billion won ($255.8 million).

From the earlier raid, the investigators reportedly found evidence that Lotte Chemical formed slush funds by overstating the import prices of raw materials.

By Choi He-suk (cheesuk@heraldcorp.com)