Shin Dong-ju Fails Again in Attempt to Return to Lotte Management

Lotte Group "Significant Lack of Compliance Awareness... Cannot Entrust Management to Japan's Lotte"

[Asia Economy Reporter Jang Sehee] Former Vice Chairman of Japan Lotte Holdings, Shin Dong-joo, attempted to return to management at the Lotte Holdings regular shareholders' meeting but failed.

According to SDJ Corporation on the 26th, at the Lotte Holdings regular shareholders' meeting held in Tokyo, Japan, that morning, the agenda to appoint Shin Dong-joo, CEO of Kwangyunsa and the largest shareholder, as a director, and the agenda to amend the articles of incorporation to prohibit individuals proven guilty of crimes from holding director positions were put to a vote but both were rejected.

Earlier, at the end of April, former Vice Chairman Shin submitted a shareholder proposal containing his appointment as a director and amendments to the articles of incorporation as the representative and shareholder of Kwangyunsa, the largest shareholder of Lotte Holdings, to correct the lack of corporate governance functions at Lotte Holdings.

Former Vice Chairman Shin said, "This shareholder proposal was a basic request to ensure the normal operation of the Lotte Group as the representative and shareholder of Kwangyunsa, the largest shareholder of Lotte Holdings, and to lead the group's compliance management by inheriting the will of the late Honorary Chairman Shin Kyuk-ho."

He added, "The loss on Lotte Holdings' consolidated financial statements is at the level of 1.1 trillion won, indicating a serious management confusion," and argued, "Fundamental management reform and reconstruction are necessary."

The Lotte Group stated, "The reason shareholders and employees did not support former Vice Chairman Shin is because there are doubts about his suitability as a manager and a significant lack of compliance awareness, making it impossible to entrust him with the management of Lotte Japan."

Meanwhile, former Vice Chairman Shin has faced off against Chairman Shin Dong-bin in votes over director appointments and other matters in a total of seven shareholders' meetings so far, but has failed each time.

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