The Korea Herald

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Lotte Homeshopping’s supplier raided over alleged graft

By Korea Herald

Published : April 10, 2014 - 20:41

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Prosecutors raided the office of a supplier to Lotte Homeshopping Thursday as part of their investigation into allegations that some employees of the television-based retailer took kickbacks in exchange for business favors.

Lotte Homeshopping, the retailer arm of the fifth-largest conglomerate Lotte Group, has been under investigation over suspicions that former and incumbent executives received bribes from vendors on the retailer’s cable network.

The Seoul Central District Prosecutors’ Office said it raided the offices of the company, without disclosing further details.

As part of the investigation, the prosecution office earlier this month indicted four former and incumbent Lotte Homeshopping employees on charges of receiving massive bribes from suppliers and subcontractors.

Also, a former sales director, only identified by his surname Shin, was arrested on Monday over his alleged involvement in a separate kickback scheme.

The prosecution office suspects that some of the money was delivered to Shin Heon, chief executive of the country’s largest department store chain Lotte Shopping. (Yonhap)