South Korea's retail giant Lotte Group recently requested an investigation from Seoul Gangnam Police Station into rumors about the company's financial instability that have circulated online since late last month, according to legal professionals on Monday.

The decision comes after rumors that the company will declare a moratorium in early December due to a liquidity crisis spread online after two YouTube channels alleged that the group was facing challenges in mid-November.

Lotte has refuted the liquidity crisis rumors, stating that they are "completely false," and warned of stern legal action against the creators and spreaders of the misinformation.

Under the country's criminal law, those who spread false information or engage in defamation could face a prison term of up to five years or a fine of up to 15 million won ($10,700).