Shin Dong-ju Attempts Return to Management of Japan Lotte... Loses Again in Local Lawsuit
[Asia Economy Reporter Lim Chun-han] Shin Dong-joo, former Vice Chairman of Lotte Holdings (Chairman of SDJ Corporation), who has been continuously attempting to return to management of Japan's Lotte Holdings, has suffered another defeat in a lawsuit with a Japanese Lotte affiliate.
According to Japanese media on the 8th, Shin lost a damages claim lawsuit filed by Lotte Service, a subsidiary of Japan's Lotte Holdings, at the end of last month.
The Tokyo District Court ruled that there were "significantly unreasonable points in the business decision process" regarding the Pullica business conducted while Shin was CEO of Lotte Service, and found that he violated his duty of care as a director. The court ordered Shin to compensate the company approximately 480 million yen (about 4.7 billion KRW).
The Pullica business involves photographing product display situations at retail stores for marketing purposes. In relation to this business, Shin was dismissed from his director positions at Japan Lotte, Lotte Trading, Lotte Property & Development, and Lotte Real Estate in January 2015. He subsequently filed a damages lawsuit with a Japanese court in 2018, claiming the dismissal was unfair, but lost. These consecutive defeats are expected to negatively impact Shin's efforts to return to management.
Shin, as the representative of Kwangyunsa, the largest shareholder of Lotte Holdings, has proposed agendas such as appointing directors who support his return and dismissing Chairman Shin Dong-bin, but he lost all seven shareholder meeting battles through last year. So far this year, he has shown no significant moves.
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A Lotte official said, "Although Shin, as the representative of Kwangyunsa, a shareholder of Lotte Holdings, submits shareholder proposals every year, Kwangyunsa is not a controlling shareholder, so passing the proposals is impossible," adding, "Shareholders and the board will make rational choices based on criteria such as management capability and compliance when appointing executives."
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