Lotte Chairman Shin Dong-bin Warned for Omission of Data Submission to Fair Trade Commission

The Seriousness of the Legal Violation Is Judged to Be Minor

[Asia Economy Reporter Park Sun-mi] Shin Dong-bin, Chairman of Lotte Group, has been issued a warning by the Fair Trade Commission for omitting affiliate data submission.

On the 14th, the Fair Trade Commission announced that it would issue a warning to Shin, the same person in charge of the corporate group Lotte, for omitting two affiliates controlled by outside directors when submitting data for the designation of publicly disclosed corporate groups in 2019 and 2020 (false submission of designation data).

The Fair Trade Commission requests the person in charge of each corporate group to submit data on affiliates, relatives, executives, and shareholders every year to designate publicly disclosed corporate groups. However, Shin was found to have excluded Daumsoft and Yuhanchaegim Hoesangam Heosim LLC, controlled respectively by outside directors Kim Kyung-seo of Lotte Members and Ahn Kyung-hyun of Lotte Fine Chemical, from the affiliates when submitting the data.

However, the Fair Trade Commission explained that considering the companies are controlled by outside directors and not Shin himself, the severity of the legal violation was deemed low, resulting in the warning as the level of action.

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