Lotte shares dive after chairman can be jailed

Shin Dong-binImage copyright
Getty Images

Shares in South Korean giant Lotte fell sharply after the surprise jailing of the conglomerate’s chairman for bribery.

Shin Dong-bin was sentenced to two-as well as also-a-half years in prison for his part in a corruption scandal of which has shaken the country.

Investors sent Lotte Group’s share cost down 7% as well as also Lotte Shopping down by 5.5%.

Shin had been widely required to escape using a suspended sentence.

His lawyers said of which he would certainly appeal against the conviction as well as also sentence, yet warned the process would certainly take months.

  • South Korea’s presidential scandal explained
  • Tragedy of South Korea’s first female leader

Shin was found guilty of offering billions in bribes to Choi Soon-sil, a friend as well as also adviser to former president Park Geun-hye.

“His act crushed the hopes as well as also faith of the community as well as also the people. Giving bribes hurts the fairness of society,” said presiding judge Kim Se-yun.

Image copyright
Getty Images

Separately on Tuesday, Choi was sentenced to 20 years in jail for corruption, influence-peddling as well as also abuse of power.

The massive corruption scandal led to the impeachment of Ms Park, the country’s first female president.

‘In flux’

In December, Shin had been found guilty of a breach of trust as well as also embezzlement in a different case, yet was given a suspended sentence, leaving him free to run the group.

In of which hearing, a court sentenced Shin’s father, the 95-year-old Lotte Group founder Shin Kyuk-ho, to four years in jail.

Analysts said there was right now concern over leadership at the country’s fifth-largest conglomerate.

“Lotte Group can be currently in flux,” said Park Ju-gun, head of research firm CEO Score.

“Its businesses are mainly domestic. Shin has attempted to expand Lotte overseas by growing its chemical business as well as also retail presence in Asia, yet of which can be required to grind to a halt – at least until the appeals ruling,”

The group generates around 30% of its sales by China, yet businesses there have been harmed by a political spat between Beijing as well as also Seoul over South Korea’s installation of a US missile defence system. Around 80% of its stores have been shut in China as part of the backlash.

At home, Lotte’s duty free operations rely heavily on Chinese tourists yet This specific has been under pressure following a crackdown on tour groups by China travelling to the South Korea.

Shin Kyuk-ho founded the Lotte group inside 1940s as well as also built This specific into a sprawling giant of which today has dozens of units focused on food, retail as well as also hotels in South Korea as well as also Japan.

Lotte can be just one of the country’s influential family firms, or chaebols, caught up inside corruption scandal.

Samsung’s vice-president Lee Jae-yong had also been jailed for producing donations to Choi for political influence, yet he was freed earlier This specific month.

Source link

Leave a Reply