E-Land’s pre-IPO placement plans for Chinese arm fall apart

[THE INVESTOR] E-Land Group’s plans for pre-IPO placement for its Chinese branch E-Land Fashion China Holdings has fallen apart over its plans to sell off the brand Teenie Weenie. E-Land has been working on pre-IPO placements for its Chinese arm hoping to raise about 1 trillion won (US$842 million). In the process, the company decided to sell Teenie Weenie, a brand under E-Land International Fashion Shanghai. Although the company hopes to raise about 2 trillion won from the sale of Teenie Weenie

June 27, 2016

Lotte’s key finance man questioned in growing probe

Lotte Insurance chief executive Kim Hyun-soo.[THE INVESTOR] Lotte Insurance chief executive Kim Hyun-soo has been summoned for questioning in the prosecution’s probe into Lotte Group. He has been summoned as a witness. Kim served in accounting rolls in Lotte Department Store from 1987 to 2014. From 2007, he was in charge of the company’s finances.   In serving as the company’s finance chief, Kim is said to have managed personal funds of Lotte Group founder Shin Kyuk-ho, and current chairman Shin

June 23, 2016

Former SPC Group executive loses lawsuit against firm

[THE INVESTOR] A legal battle between SPC Group -- the operator of South Korea’s largest bakery chain -- and a former executive has ended in favor of the company.Former Paris Croissant chief executive Jung Tae-soo automatically lost the suit when he failed to appeal a lower court ruling that ruled in favor of SPC, industry sources said on June 23.  SPC is the parent company of Paris Croissant, a popular bakery and coffee shop chain. In December 2014, Jung, 61, sued SPC for unjustified dismissal.

June 23, 2016

46 of 256 Lotte offshore firms in suspected tax havens

[THE INVESTOR] Almost one out of five Lotte Group companies located overseas are based in suspected tax havens, a report showed on June 23. Lotte Group, headed by Shin Dong-bin, is currently under an expanding investigation on suspicion of widespread corruption. According to a research institute operated by Energy Economy News, 46 of Lotte Group’s 256 offshore companies are located in suspected tax havens. The institute’s analysis showed that Lotte Group has 26 companies in Hong Kong, nine in Si

June 23, 2016

Kolmar Korea to build second Chinese plant

[THE INVESTOR] Kolmar Korea announced on June 22 that it has signed an agreement to build its second plant in Wuxi, Jiangsu Province. The new plant will boost Kolmar Korea’s production capacity in China to 520 million cosmetics products per year. The company currently operates a plant in the Beijing area. According to the agreement, signed with the government of Wuxi New District, Kolmar Korea will invest US$30 million to build a new plant. The new plant will be designed to have an annual produc

June 22, 2016

Gov’t amps up shopping event to boost consumption

[THE INVESTOR] A large-scale shopping-hallyu festival will be held in September to boost domestic consumption, the government said on June 21. The Ministry of Culture, Sports and Tourism and the Ministry of Trade, Industry and Energy said that a government-private sector committee on the event has been formed and its first meeting was held on June 21. Korean Black Friday.The event, titled Korea Sale FESTA, will be held from Sept. 29 through Oct. 31. According to the ministries’ description, the

June 21, 2016

Shinsegae eyes another duty-free shop

[THE INVESTOR] Shinsegae Group vice chairman Chung Yong-jin on June 21 hinted that the retail giant is keen to operate another duty-free store in Seoul. Shinsegae earned the operational rights of a new downtown duty-free store last year and its first outlet recently opened within its flagship Shinsegae Department Store in central Seoul. Shinsegae Group vice chairman Chung Yong-jin speaks at a job fair in Seoul on June 21. Lee Sang-sub/The Investor“Nothing has been decided. But it is true we have

June 21, 2016

New baby formula regulations to threaten Korean firms in China

[THE INVESTOR] China’s new tougher baby formula regulations could spell trouble for Korean producers, Seoul’s trade agency warned on June 21. According to Korea Trade-Investment Promotion Agency’s branch in Beijing, Chinese authorities will limit the number of brands and products a company can market in China from October. Under the measures announced by China Food and Drug Administration on June 8, a single company is limited to three brands, and nine products. China has been beefing up regulat

June 21, 2016

[DECODED: LOTTE] Shin Dong-bin’s battle wages on

[THE INVESTOR] In front of a bank of flashing cameras, Lotte Group chairman Shin Dong-bin took to the witness stand for a parliamentary audit for the first time as a chaebol chief on Sept. 17 last year. The five-hour grilling took place just as the public’s hostility toward Lotte -- including for its national identity, murky governance and bitter fraternal war -- was reaching its climax. Lawmakers were eager to drive him into a corner. But Shin remained outwardly calm even then, though his hands

June 20, 2016

[DECODED: LOTTE] Timeline of Lotte family feud

 

June 20, 2016

[DECODED: LOTTE] Lotte in numbers

  

June 20, 2016

Lotte affiliates purchased $192.7m worth of owner family’s shares

[THE INVESTOR] Lotte Group affiliates have frequently purchased stocks of unlisted companies owned by the group’s owner family, including the founder Shin Kyuk-ho and his three children, since 2001, data by an online corporate tracker showed on June 19. According to Chaebul.com, Lotte’s seven affiliates, including Hotel Lotte -- the de facto holding company of its Korea operations -- have spent a total of 224.6 billion won ($192.7 million) to purchase shares of private companies owned by the fou

June 20, 2016

Authorities to wrap up probe on humidifier sterilizer cases

[THE INVESTOR] South Korean prosecutors will be wrapping up the five-month investigation into toxic humidifier disinfectants that left at least 140 dead and hundreds more affected since 2011, according to officials on Sunday.The special probe team of Seoul Central District Prosecutors Office is expected to press charges against some 20 people related to the incident, including 12 already arrested on charges varying from professional negligence to false advertising that products were safe. The su

June 19, 2016