Lotte Family Share Inheritance... The Choice of the Late Shin Kyuk-ho is Shin Dong-bin

Chairman Shin Dong-bin Inherits 41.7% of Shares
Increased Holdings in Domestic Listed Affiliates
Former Director Shin Young-ja Holds 33.3%
Former Vice Chairman Shin Dong-joo Inherits 25%

Shin Dong-bin, Chairman of Lotte Group, and Shin Dong-ju, Chairman of SDJ Corporation, are paying tribute with flowers at the funeral ceremony of the late Shin Kyuk-ho, Honorary Chairman of Lotte Group, held on the 22nd at the Lotte World Mall Concert Hall in Songpa-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Lee Seung-jin] The inheritance status of shares in domestic listed Lotte affiliates held by the late Shin Kyuk-ho, Honorary Chairman of Lotte, has been disclosed.

According to the Financial Supervisory Service's electronic disclosure on the 31st, the inheritance of shares previously held by Honorary Chairman Shin in Lotte Holdings (3.09%), Lotte Shopping (0.93%), Lotte Confectionery (4.48%), and Lotte Chilsung Beverage (1.30%) has been completed.

The heirs?Shin Young-ja, former Chairwoman of the Lotte Scholarship Foundation; Shin Dong-joo, Chairman of SDJ Corporation (former Vice Chairman of Japan Lotte Holdings); Shin Dong-bin, Chairman of Lotte Group; and Shin Yu-mi, former advisor to Hotel Lotte?have inherited the shares with Chairman Shin Dong-bin receiving 41.7% of the shares by company, and former Chairwoman Shin Young-ja receiving 33.3%.

Chairman Shin Dong-joo received the legal inheritance ratio of 25%, while former advisor Shin Yu-mi did not receive any shares. The inheritance portion of former advisor Yu-mi was divided between Chairman Shin Dong-bin and former Chairwoman Shin Young-ja in a 2:1 ratio. Although the principle is for heirs to inherit shares in equal proportions, the ratios can be adjusted by agreement among the heirs.

As a result, Chairman Shin Dong-bin's 'one-top' system is considered to have been further strengthened. In Lotte Holdings, Chairman Shin Dong-bin's stake increased from 11.75% to 13.04%, former Chairwoman Shin Young-ja's stake rose from 2.24% to 3.27%, and Chairman Shin Dong-joo's stake grew from 0.16% to 0.94%.

In Lotte Shopping, Chairman Shin Dong-bin's stake increased from 9.84% to 10.23%, former Chairwoman Shin Young-ja's stake rose from 0.74% to 1.05%, and Chairman Shin Dong-joo's stake increased from 0.47% to 0.71%. In Lotte Confectionery, Chairman Shin Dong-bin, who previously held no shares, acquired a 1.87% stake through this inheritance, former Chairwoman Shin Young-ja's stake increased from 1.66% to 3.15%, and Chairman Shin Dong-joo inherited a 1.12% stake.

Similarly, in Lotte Chilsung Beverage, Chairman Shin Dong-bin, who previously held no shares, acquired a 0.54% stake through this inheritance, former Chairwoman Shin Young-ja's stake increased from 2.66% to 3.09%, and Chairman Shin Dong-joo holds 0.33%.

The heirs have completed the valuation of the entire estate and reportedly filed the inheritance tax return with the National Tax Service on this day. Current inheritance law stipulates that inheritance tax must be reported by the end of the sixth month following the death of the decedent. Since Honorary Chairman Shin passed away in January, the bereaved family must file the inheritance tax by the 31st of this month.

The valuation of domestic inherited stocks alone amounts to approximately 450 billion KRW, and the value of real estate in Gyeyang-gu, Incheon, measuring 1,667,392 square meters, is estimated at 450 billion KRW. Considering that an inheritance tax rate of 50% applies to inherited shares valued over 3 billion KRW, with an additional 20% surcharge if inherited by related parties, the domestic inheritance tax alone is expected to reach about 450 billion KRW.

Adding shares in Japanese affiliates such as Japan Lotte Holdings (0.45%), Kwangyunsa (0.83%), LSI (1.71%), Lotte Green Service (9.26%), Family (10.0%), and Krispy Kreme Doughnuts Japan (20.0%), the total estate is estimated to be at least 1 trillion KRW, which will further increase the inheritance tax.

The inheritance status of the Japanese estate has not been disclosed. However, since former advisor Shin Yu-mi was excluded from the inheritance of domestic affiliate shares, it is speculated that a significant portion of the Japanese estate was inherited by former advisor Yu-mi.

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