[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 Group’s corporate governance structure, which will lower stakes held by Japanese companies and diversify Lotte’s stakeholders. We will continue to closely cooperate with our advisers and regulators to determine future actions,” it said.