After Indictments, Lotte Group Seen Kicking Off Charm Offensive
- Chairman, founding family members charged with corruption
- Lotte is preparing to unveil reform measures, official says
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As Lotte Group’s founding family braces for trial to face charges of embezzlement, tax evasion and breach of fiduciary trust, the nightmare for investors in the South Korean conglomerate may be approaching an end.
On Wednesday, prosecutors announced widely expected indictments against the chairman and his family. Now that’s happened, Lotte can turn its attention toward unveiling sweeping reforms by as soon as next week, a group official said, asking not to be identified because the plan hasn’t been made public. The proposal will probably include a revival of the hotel unit’s initial public offering and some unwinding of cross shareholdings, Korea’s Chosun Ilbo newspaper reported.