[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

[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

[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

[LOTTE CRISIS] Hotel Lotte withdraws IPO as embezzlement probe deepens

[THE INVESTOR] Hotel Lotte on Monday officially canceled its initial public offering scheduled for next month, as a large-scale embezzlement probe into the group and its affiliates deepened with emerging reports of confirmed wrongdoings.“We are pushing back our IPO to a later time and cancelling all remaining procedures in consideration of Lotte’s current circumstances and investor interests,” Hotel Lotte said in an emailed statement.“Listing the company is an integral part of reforming Lotte Gr

June 13, 2016

Ulterior motives behind the mass Lotte-raid?

Lotte Group’s shareholding structure -- dominated by Japanese entities -- and its wrongdoings during the previous administration are behind the prosecution’s raid on the conglomerate, local news outlets have alleged since the June 10 raid.The Seoul Central District Prosecutors’ Office carried out simultaneous raids on 17 locations linked to the group including Lotte Group headquarters, and the homes of a number of key executives.The office of Lotte Group founder Shin Kyuk-ho and chairman Shin Do

June 13, 2016

Lotte group raided over alleged slush fund, corruption

[THE INVESTOR] The prosecution raided the head office of Lotte Group, the nation’s fifth-largest conglomerate, and its seven affiliates in Seoul on Friday over allegations that they created a multibillion won slush fund through shady asset transfers between subsidiaries as well as possible capital inflow to Japan.(Yonhap)More than 200 investigators combed 17 Lotte offices including residences of Lotte chairman Shin Dong-bin and other top executives and the secluded office of Lotte founder Shin K

June 10, 2016

Newcomers to Korea’s tax-free market in all-out war

[THE INVESTOR] Step into the doors of the third-floor entrance of HDC Shilla Duty Free in Yongsan, central Seoul, and it’s a whole new world. The gleaming marble floors, the endless showcases stamped with global cosmetics brand names and the air filled with a faint floral scent are in stark contrast to the surrounding area, known best for its American military base. Visitors watch 360-degree LED displays surrounding a swing ride, created by Belgian artist Carsten Holler, at Shinsegae Duty Free’s

June 9, 2016

E-mart enters soju market

[THE INVESTOR] Discount retailer E-mart is entering the soju market with the acquisition of Jeju Soju, the company said Thursday.The two companies signed a provisional contract, with final terms and conditions to be negotiated before the final agreement.Jeju Soju’s two lines of soju (Jeju Soju website)Reports estimate the deal to be worth around 30 billion won ($26 million), but Shinsegae Group, the parent company of E-mart, said that the deal price could not be confirmed until final negotiation

June 9, 2016

Korea’s cosmetics production surpasses record W10tr

South Korea’s net cosmetics production reached a record 10.73 trillion won ($9.3 billion) last year, led by strong exports to China, the Ministry of Food and Drug Safety said Wednesday.Korea’s cosmetics production rose on-year by 19.64 percent in 2015, lending a hand in doubling the country’s cosmetics trade surplus on-year to roughly $1.5 billion last year, the ministry said.Cosmetics shops inside the main Shinsegae Department Store in central Seoul (Yonhap)Korea’s cosmetics exports rose 43.76

June 8, 2016

Amid growing uncertainty Hotel Lotte delays IPO

Hotel Lotte on Tuesday postponed a plan to list itself on the nation’s main bourse this month in the face of growing concerns over an ongoing probe into a lobbying scandal involving the firm’s former executives.Hotel Lotte, the operator of the nation’s largest duty-free business, said in its report to the Financial Services Commission that it would delay its IPO to next month. It also said it would lower the price range to between 85,000 won and 110,000 won per share, from 97,000 won to 120,000

June 7, 2016

Lotte chairman in quandary over sister’s fate

Lotte Group chairman Shin Dong-bin’s pledge to separate his family’s ownership from its influence on the group’s management was put to the test Monday amid escalating controversy over his elder sister’s involvement in a lobbying scandal.With calls mounting to fire Shin Young-ja, a former executive and a sitting boardroom member of Hotel Lotte, the chairman appears to be contemplating whether to kick his sister out or to keep her by his side.(Yonhap)Shin Young-ja, the eldest daughter of Lotte fou

June 6, 2016

Safety concerns growing over AmorePacific’s lip product

A growing number of consumers who purchased lip products by Aritaum, cosmetic giant AmorePacific’s budget brand, are claiming to have adverse skin reactions after applying the product, according to local reports Thursday.Online posts showing swollen lips and pustular eruptions have been uploaded by users who have complained the symptoms began only after applying Aritaum Volume-Up Oil Tint.Aritaum’s Volume Up Oil Tint (AmorePacific Mall)Reports by Environment TV quoting a dermatologist said the s

June 2, 2016

Eco-friendly soap sales soar due to Oxy fears

Sales of eco-friendly soaps are on the rise as consumers here continue to be wary of potentially harmful household supplies after the Oxy toxic humidifier disinfectant case, data showed Wednesday.According to data from online open market Auction, sales of natural and eco-friendly dishwashing soaps rose 74 percent in April and May compared to the previous year, reflecting growing demand from retailers and consumers over natural replacements for chemical soaps. A consumer browses natural cleaners

June 1, 2016

Korea to export ‘samgyetang’ to China

South Korea will begin exporting its traditional ginseng chicken soup “samgyetang” to China from next month, as the two countries have reached an agreement on the trade deal, the Korean Agriculture Ministry said Sunday.The Ministry of Agriculture, Food and Rural Affairs said the two governments have concluded talks on related food regulations including those on quarantine and sanitation, making way for Korea to start exporting its chicken soup to China.A bowl of samgyetang (Yonhap)Once local chi

May 30, 2016

Sales of Korean-made products rise in duty-free shops

Sales of Korean-made products have risen in domestic duty-free shops to reach 40 percent of all sales, according to data from the Korea Customs Service on Sunday.Duty-free outlets in Korea saw revenues of 3.74 trillion won ($3.17 billion) in the first third of 2016, marking an 18.1 percent increase from the same period last year. Korean-made products were credited for 42.2 percent of those sales.Tourists shop for cosmetics at Shinsegae Duty Free in Myeong-dong. (Yonhap)The latest numbers show a

May 29, 2016

Lotte Shopping suspended for false documents

The government on Friday ordered Lotte Shopping, a TV shopping channel under retail giant Lotte, to stop operating programs for six hours during prime time for six months, as part of a disciplinary measure for submitting false documents.The suspension is set to begin on Sept. 28, according to the Ministry of Science, ICT and Future Planning, adding that the TV channel will be banned from broadcasting programs between 8 a.m. and 11 a.m., and 8 p.m. and 11 p.m. daily. The decision came after Lotte

May 27, 2016

Fried chicken market anything but small in Korea

 Fried chicken has found a firm place in present-day Korean cuisine, despite being commonly considered a creation from the United States. Among other things, it is a staple as a midnight snack for Koreans and the food of choice at baseball stadiums, for get-togethers along the river and for those entertaining guests at home. Despite the saturated market, the fried chicken industry remains strong and is still growing, with technology allowing for efficient deliveries and continuously evolving rec

May 27, 2016