[Shin Kyukho Passes Away] First-Generation Korean Business Leader Who Pioneered Distribution, Tourism, and Construction Industries (Comprehensive)

Peaceful Passing at 99 Surrounded by Family
Success in Japan, Founding of Lotte Confectionery in 1967
Expansion into Distribution, Petrochemicals, Food, Construction, and Finance

[Asia Economy, reporters Cha Minyoung and Lee Seungjin] Shin Kyukho, the founder and Honorary Chairman of Lotte Group, which ranks fifth among South Korea's conglomerates, passed away on January 19 at the age of 99. He developed Lotte Group's affiliates into leading domestic and international companies across sectors including distribution, petrochemicals, food, construction and manufacturing, and finance. He also laid the foundation for the development of Korea's tourism and service industries, which were virtually barren after the Korean War in the 1950s.

Lotte Group announced that at 4:29 p.m. on this day, Honorary Chairman Shin passed away peacefully, surrounded by his family, including Lotte Chairman Shin Dongbin and his eldest son, Shin Dongju, former Vice Chairman of Lotte Holdings Japan (currently Chairman of SDJ Corporation). Honorary Chairman Shin was hospitalized at Seoul Asan Medical Center on the night of January 18 after his health rapidly deteriorated. He had previously been hospitalized in December of last year due to health issues and was discharged, and in November, a month prior, he stayed in the hospital for about two weeks due to dehydration symptoms.

A group official stated, "Honorary Chairman Shin, who was hospitalized due to old age, saw his condition worsen rapidly starting on January 18, and he passed away peacefully on January 19 with his family present."

On this day, Chairman Shin Dongbin returned urgently from a business trip to Japan to be at his father's side with his family during his final moments. Former Vice Chairman Shin Dongju visited the funeral hall with his wife, Cho Eunju, at around 6 p.m., paid his respects, and left after about ten minutes. The two, whose relationship had been strained due to a management rights dispute, reportedly reunited at the hospital for the first time in one year and three months since they last met at the second trial sentencing for the state affairs manipulation and management corruption case involving Chairman Shin Dongbin in October 2018.

Honorary Chairman Shin's wife, Hatsuko, reportedly stayed by his side since last week after hearing news of his deteriorating health. Currently, the funeral hall is being attended by his second son, Shin Dongbin, Chairman of Lotte Group. Starting with former Vice Chairman Shin, a procession of affiliate CEOs and business leaders have been visiting to pay their respects. Park Jun, Vice Chairman of Nongshim, and Kim Namjung, Vice Chairman of Dongwon Group, also visited the funeral hall before the official condolence period began.

In addition, affiliate CEOs such as Min Myungki, CEO of Lotte Confectionery, and Kang Sunghyun, CEO of Lotte Nestle, hurried to the funeral hall. Other business leaders, including So Jinse, CEO of Kyochon F&B, also continued to visit.

The funeral for Honorary Chairman Shin will be held as a group funeral. The procession will take place at 6 a.m. on January 22, and the memorial service is scheduled for 7 a.m. on the same day at Lotte Concert Hall. Lee Hongkoo, former Prime Minister, and Ban Kimoon, former UN Secretary-General, have been appointed as honorary funeral committee chairmen. The funeral committee chairmen will be Hwang Kakgyu and Song Yongdeok, both CEOs of Lotte Holdings.

A Lotte Group official stated, "The funeral will be held as a group funeral to honor the late founder of Lotte Group," adding, "In accordance with the deceased's lifelong practice of 'Geohwachwisil,' we politely decline condolence money and floral tributes." Geohwachwisil is a four-character idiom meaning to shun extravagance and value substance, and Honorary Chairman Shin valued practical management so much that he displayed this phrase in his office.

Honorary Chairman Shin Kyukho in His Youth

The influence of Honorary Chairman Shin extended beyond Lotte Group to the broader Korean industrial sector during the modern era following the Korean War. He was born in 1922 (according to resident registration) as the eldest son among five sons and five daughters in a wealthy family in Ulsan, Gyeongnam, during the Japanese occupation. He went to study in Japan at an early age and majored in chemistry at Waseda University in 1946.

His sincere character played a crucial role in raising initial business capital during his youth in Japan. While studying and delivering milk part-time, Shin Kyukho became known for his punctuality, which led to early investments from Japanese financiers. After founding Lotte Co., Ltd. in 1948, he established Lotte Trading in 1959, Lotte Real Estate in 1961, Lotte Bussan and Family Co., Ltd. in 1968, and wrote a success story as one of Japan's top ten conglomerates.

After achieving success as a businessman in Japan, he shifted his business focus to Korea in the 1960s. In 1966, he expanded into Korea by establishing Lotte Aluminum, laying the foundation for future growth. Notably, 1967 was a landmark year as he founded Lotte Confectionery, the group's core affiliate, and began investing in his homeland. In 1973, he established Hotel Lotte, Lotte Electronics, and Lotte Engineering, followed by Lotte Industry, Lotte Trading, and Lotte Chilsung Beverage in 1974.

Shin Kyukho, Honorary Chairman, holding a meeting to promote the establishment of Lotte Hotel

In 1978, he established Lotte Construction, Lotte Samkang, Lotte Ham, and Lotte Milk. In 1979, he founded Lotteria (now Lotte GRS) and Lotte Shopping. In 1980, he established Korea Fuji Film, and in 1982, Lotte Canon and Daehong Communications. In 1983, he founded the Lotte Scholarship Foundation to support students majoring in basic sciences. In 1985, he established Lotte Canon. In 2011, he became the General Chairman of Lotte Group. In 2015, his title changed from CEO to Honorary Chairman of Lotte Holdings Japan, the holding company of Lotte in Japan, marking his retirement from front-line management.

Honorary Chairman Shin was the last active first-generation entrepreneur after founding Lotte in Japan in 1948, and was instrumental in establishing and developing the service industry in Korea. In recognition of his contributions to the development of the domestic tourism industry, he received the Bronze Tower Order of Industrial Service Merit in 1981 and, in 1995, became the first in the tourism industry to receive the Gold Tower Order of Industrial Service Merit.

Shin Kyukho, Honorary Chairman of Lotte Group, and his wife, along with Shin Dongbin, Chairman, attending the opening ceremony of Lotte Department Store Yeongdeungpo Branch in 1991

Despite being the founder of Lotte, he also experienced family hardships. In 2015, he endured the so-called "War of Princes," a management rights dispute between brothers. The entire family, including himself, his eldest son, eldest daughter, and common-law wife, all faced legal proceedings at once, which significantly damaged the image of Lotte Group both domestically and internationally.

With the passing of Honorary Chairman Shin Kyukho, Lotte Group is expected to maintain stable management under the single leadership of Chairman Shin Dongbin. Chairman Shin Dongbin was appointed CEO of Lotte Holdings Japan in February last year and was smoothly reappointed as a director at the regular shareholders' meeting of Lotte Holdings in June of the same year.

Meanwhile, Honorary Chairman Shin is survived by his wife, Hatsuko Shigemitsu; his eldest daughter, Shin Youngja, former Chairwoman of the Lotte Welfare Foundation; his eldest son, Shin Dongju, former Vice Chairman of Lotte Holdings Japan; and Shin Dongbin, Chairman of Lotte Group.

This content was produced with the assistance of AI translation services.