Hyundai Motor may partner with Uber

U.S.-based ride-hailing service provider Uber Technology’s employees attended Hyundai Motor's autonomous technology seminar Wednesday, the automaker confirmed, raising speculation of the two firms’ possible tie-up in the self-driving sector. “It is true that Uber’s working-level employees have joined a two-day autonomous technology seminar held in Hyundai’s research center,” a Hyundai Motor spokesperson told The Korea Herald by phone. The closed-door seminar was held together with Hyundai’s part

June 15, 2016

[LOTTE CRISIS] Shin Dong-bin’s right-hand man suspected of stashing slush funds

[THE INVESTOR] Prosecutors believe Hwang Gak-kyu, a close aide to Lotte chairman Shin Dong-bin, is a key figure behind Lotte Group’s massive slush fund creation, local news reported on June 15. Hwang, who is the head of the operation team and president of the group, is reportedly suspected to have transferred slush funds by overstating the import price of raw materials. Lee Sang-sub/babtong@heraldcorp.comSeoul Central Prosecutor’s Office has secured testimony and evidence that Hwang, a petrochem

June 15, 2016

E-Land, KKR sign binding MOU on Kim’s Club sale

[THE INVESTOR] Local retailer E-Land on June 15 signed a binding memorandum of understanding with the U.S. private equity fund KKR & Co. regarding the sale of hypermarket chain Kim’s Club. E-Land told local media that the memorandum is based on details worked out during previous negotiations and that the two sides are continuing negotiations. The two firms are expected to hammer out details over the next month.According to reports, E-Land and KKR have negotiated over the latter’s acquisition of

June 15, 2016

[LOTTE CRISIS] Tax-haven firms with ‘Lotte’ name raise questions

[THE INVESTOR] Some offshore companies may have possible links to the embattled Lotte Group, which is facing a widening probe over alleged embezzlement and slush fund creation. Lotte Group Limited and Lotte Farm Group Limited, which were incorporated in the tax haven British Virgin Islands in 2012 and 2011, respectively, are listed in the Panama Papers -- which features millions of leaked documents on offshore companies and their ultimate beneficiaries -- reviewed by The Investor on June 15. The

June 15, 2016

[LOTTE CRISIS] Lotte chairman vows to list Hotel Lotte by year-end

 [THE INVESTOR] Lotte Group chairman Shin Dong-bin on June 14 (U.S. time) pledged to push through with the now-stalled plans for Hotel Lotte’s initial public offering by the end of this year.“This does not indicate an indefinite delay,” Shin told reporters at the groundbreaking ceremony for a joint venture chemical plant in Lake Charles, U.S. “This was a promise made to the public, and it will be followed through.  Lotte Group chairman Shin Dong-binOn June 10, local prosecutors launched an inves

June 15, 2016

Shin Dong-joo eyes return to power

[THE INVESTOR] The bitter family feud that broke out between two brothers of one of Korea’s largest conglomerates is reigniting as a probe into the group’s finances threatens to shake the company’s stability.Shin Dong-joo, the head of SDJ Corporation, was ousted by shareholders from his controlling position in Lotte’s Japanese operations under the leadership of his younger brother Shin Dong-bin earlier this year.By removing Lotte founder Shin Kyuk-ho and Shin Dong-joo from power, Shin Dong-bin e

June 14, 2016

[LOTTE CRISIS] Breakdown of Lotte Group’s mega real-estate empire

[THE INVESTOR] The widening probe into Lotte Group over alleged embezzlement and the creation of a slush fund is shedding light on the South Korean retail giant’s vast real estate, the scale of which is thought to be the largest among conglomerates here if both listed and unlisted units are combined. The value of property owned by Lotte’s eight listed units is estimated to be 10.7 trillion won ($9.08 billion) as of 2015, the third largest in the nation, following Hyundai Motor Group with propert

June 14, 2016

[LOTTE CRISIS] 15 more Lotte affiliates raided in widening probe

[THE INVESTOR] Seoul prosecutors executed a second round of raids on several key affiliates of South Korean retail giant Lotte Group on Tuesday in a widening probe into the country’s fifth-largest conglomerate over alleged embezzlement and slush fund creation.The Seoul Central District Prosecutor’s Office said it raided 15 offices, including Lotte Chemical, Lotte Confectionery, Lotte Chilsung Beverage and Lotte Engineering & Construction, an unlisted company. Lotte Group’s headquarters in centra

June 14, 2016

[LOTTE CRISIS] Shin Kyuk-ho’s hidden cash, ledgers found

[THE INVESTOR] Prosecutors have found a breakthrough in their investigation of Lotte Group‘s founder and top executive, securing testimony that two officials had received more than 30 billion won ($25.6 million) annually from companies affiliated with the conglomerate.Financial managers within the group reportedly told prosecutors during questioning that Lotte founder Shin Kyuk-ho and his son, current group chairman Shin Dong-bin, had collected 10 billion won and 20 billion won, respectively, ea

June 14, 2016

[LOTTE CRISIS] Lotte crisis becomes boon for Axiall shareholders

[THE INVESTOR] Shareholders of Axiall have inadvertently benefited from the current crisis faced by South Korean retail giant Lotte, which resulted in Lotte Chemical dropping out of the race to acquire the U.S.-based chemicals firm. Lotte Chemical and U.S. chemicals manufacturer Westlake Chemicals had previously been vying with one another to acquire Axiall. In the face of competition from Lotte, Westlake had raised the stakes. On June 10, the company won the bid for Axiall after submitting a bi

June 14, 2016

[LOTTE CRISIS] Probe questions Lotte’s $10b real estate empire

[THE INVESTOR] The expanding probe into alleged irregularities at Lotte Group is leading investigators to the multibillion-dollar real estate empire under the control of its founding family, and also implicating Lotte companies. Lotte Group founder Shin Kyuk-ho has made a name for himself as one who has the Midas touch when it comes to real estate transactions, managing to turn profits with most -- if not all -- transactions. Investigators enter Lotte Group premises on June 10. The InvestorHowev

June 14, 2016

[LOTTE CRISIS] Lotte probe team on trail of retired Air Force general

[THE INVESTOR] The probe into Lotte Group is set to engulf the civil and military services as the investigators close in on a retired Air Force general on suspicion of bribery. According to reports, the investigators have uncovered a money trail leading from Lotte Group to a retired Air Force lieutenant general who served as the deputy chief of staff.The Lotte World Tower in southern Seoul. The InvestorLotte Group is suspected of having handed 1.2 billion won ($1 million) to a construction firm

June 14, 2016

Global EV market to grow 60% this year: report

The global electric vehicle market is predicted to grow around 60 percent this year and next year amid global efforts to boost the green car industry, according to market data Tuesday. According to Japanese market research firm B3, the volume of the global electric car battery market is expected to grow 66 percent this year to 16,000 kilowatt-hours from the previous year. This is a 23 times increase over the past seven years, compared to 1,140 kilowatt-hours in 2010. The figure is again predicte

June 14, 2016

[LOTTE CRISIS] Lotte accused of using real estate to create slush funds

[THE INVESTOR] Prosecutors are investigating allegations that Lotte Group chairman Shin Kyuk-ho, 94, used real estate transactions to accumulate slush funds. The authorities say that Shin purchased cheap real estate and sold them off to other affiliates at a much higher price. They are searching for evidence linking the proceeds from such sales to corporate slush funds. According to the industry, Shin resold land that he had granted to a Lotte scholarship foundation for 103 billion won ($87 mill

June 14, 2016

[LOTTE CRISIS] M&A possibly behind Lotte’s alleged embezzlement

[THE INVESTOR] South Korea’s fifth-largest conglomerate Lotte Group is being probed by the Seoul Central Prosecutor’s office on allegations of embezzlement and new discoveries are being dug up. Prosecutors currently speculate that there could have been 300 billion won ($260 million) worth of embezzled money derived from the acquisition of China-based home shopping network Lucky Pai in 2010, reported a media outlet. Lotte acquired the then heavily indebted network with funds from its retail arms

June 14, 2016

Lotte probe expands, more affiliates raided

[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 acti

June 14, 2016

Hyundai, Kia enjoy soaring sales in Mexico

Sales of vehicles from Hyundai Motor and its smaller affiliate Kia Motors have nearly quadrupled in Mexico in May from a year ago, industry data showed Tuesday.Data compiled by the Mexican Automotive Industry Association showed that the two South Korean carmakers sold a combined 7,727 units in Mexico in May, compared with 2,049 units from the same period last year.Strong sales also raised the combined market share by Hyundai and Kia in Mexico to 6.4 percent, an all-time record high, in May.Last

June 14, 2016

[Graphic News] Global electric vehicle sales surpass 1 million

Accumulated global electric vehicle sales reached 1.2 million as of last year, according to a report compiled by the Organization for Economic Cooperation and Development and the International Energy Agency released Sunday. A total of 550,000 EVs including battery electric vehicles and plug-in hybrid electric vehicles were sold last year, which is a 70 percent increase compared to the 324,000 EVs sold in 2014. The number of newly registered electric vehicles in China was the highest last year wi

June 13, 2016

[LOTTE CRISIS] Elder son of Lotte founder to renew fight for control

[THE INVESTOR] Shin Dong-joo, the elder son of Lotte Group founder Shin Kyuk-ho, is readying for a new round in the fight for control of the conglomerate. According to local news reports, Shin Dong-joo’s legal team has found “elements that could be problematic” in Hotel Lotte’s books, and plans to disclose the information “at the appropriate time.”Shin Dong-joo at a press conference in Seoul last year. The InvestorShin Dong-joo had hoped to succeed his father as the group’s chairman, but was ous

June 13, 2016

[LOTTE CRISIS] Probe wreaks havoc on Lotte’s expansion

[THE INVESTOR] Lotte Group is facing the biggest crisis in its history with a corruption probe bringing its major projects to a halt. Following a raid on June 10, the group’s plans to acquire a U.S.-based chemicals maker have been scrapped, while listing of Hotel Lotte on the local market has reportedly been put on hold indefinitely. In the afternoon of June 10, Lotte Chemicals Corp. scrapped its Axiall acquisition plans made public only three days prior. The plans were made formal on June 7, an

June 13, 2016