Dong-joo has already filed a lawsuit against Dong-bin and his cronies for kicking him out of the managerial positions from 80-plus Lotte affiliates. Their father too has filed for an injunction against Dong-bin to look into Lotte’s fiscal records. The first hearing for the case is scheduled on Oct. 28.

“After studying the books, Dong-joo will ask those responsible for the poor management to face the music,” an insider said.

Business insiders claim that things aren’t so rosy for Dong-bin because he has a weaker foundation inside Lotte Group than expected.

Chaebul.com, a website dedicated to tracing the wealth of the superrich, reported that Dong-bin holds less shares of Lotte affiliates than other Shin clan members’ combined stakes.

For instance, Dong-bin owns 13.46 percent of Lotte Shopping, which is smaller than 15.31 percent held by Kyuk-ho, Dong-joo as well as others. Dong-bin’s share in Lotte Confectionary stands at 5.34 percent, far below other members’ combined share of 13.31 percent. The two companies are regarded as the pivotal axis of Lotte’s cyclical shareholding structure.

“This suggests that should Dong-bin rub his kin the wrong way, his hold on management could be jeopardized,” the website operator said.

And the family risk is expected to pose a blow to many of Dong-bin’s businesses.

As a start, the listing of Hotel Lotte is expected to be postponed from the initially planned February 2016.

As part of the bid to enhance transparency in the rather obscure governance structure, the chairman pledged to issue an initial public offering of Hotel Lotte, the de facto holding company of Lotte Group Korea. And with the money gathered from the IPO, the company said it will dissolve 80 percent of the cyclical shareholding structures.

However, listing on the local bourse is likely to be delayed as the stability in management -- an important factor in the assessment process -- is not yet guaranteed, insiders said.

Moreover, the company is on the verge of losing its cash cow -- the urban duty-free store operation license that expires by the end of the month. “The family tantrum inside the superrich family has brought a devaluation effect of the Lotte brand and politicians are pressurizing the government to strip the company of the perk,” an industry pundit said.

Moreover, Dong-joo is likely to seek for an alliance with the stock-owning employees’ group of Lotte Holdings, which holds 27.8 percent of Lotte Holdings.

Previously the group endorsed Dong-bin but Dong-joo’s team expects reform aspiration will make the employees change their mind.

Should the employees turn their back on Dong-bin, the 60-year-old is likely to face various challenges against his throne, analysts say. “It is time for Dong-bin to show impressive business records to gain public and stakeholders’ approval. In the middle of an economic slowdown, it will be very hard,” another observer said.

Lotte Group on Wednesday dismissed the latest development saying that the Kojyunsya brouhaha has little influence on Lotte management. “It is just a family company. It is not a holding company either,” the company spokesman said, trying to quell market anxiety as the stock price of Lotte tumbled on Wednesday morning.

By Bae Ji-sook (baejisook@heraldcorp.com)