Fair Trade Commission Conducts On-Site Investigation into Unfair Support Allegations Among Lotte Affiliates

Allegations of Overpriced Real Estate Transactions

The Fair Trade Commission has launched a full-scale investigation into allegations of unfair support in real estate transactions among Lotte Group affiliates.

According to industry sources on the 4th, the Fair Trade Commission sent about 10 investigators to the headquarters of Lotte Homeshopping, Lotte Holdings, and Lotte Wellfood to secure materials related to the allegations.

The Fair Trade Commission is reportedly investigating to determine whether transactions between Lotte Group affiliates were conducted under more favorable conditions than those with non-affiliated companies.

Industry insiders believe this investigation is related to a report filed by Taekwang Industrial, the second-largest shareholder of Lotte Homeshopping, to the Fair Trade Commission in 2023, accusing Lotte Homeshopping of unfair support.

Earlier, in July 2023, Lotte Homeshopping's board of directors decided to purchase the office building in Yangpyeong-dong, Seoul, owned by Lotte Holdings and Lotte Wellfood, for 203.9 billion won. Initially, Lotte Homeshopping was leasing the building and stated that the purchase was made to improve working conditions and enhance profitability by reducing rental costs.

However, Taekwang Industrial claimed that the transaction was conducted at a price higher than the market value and filed a report with the Fair Trade Commission, alleging that it was an unfair support act to provide liquidity to Lotte Group.

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