• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

Current price of oil as of July 2, 2026

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii

3

Current price of oil as of July 2, 2026
Lotte Group

Prosecutors Seek an Arrest Warrant for Lotte Group Chairman

By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
Down Arrow Button Icon
By
Reuters
Reuters
and
Michelle Toh
Michelle Toh
Down Arrow Button Icon
September 26, 2016, 6:01 AM ET
Lotte Shin Dong-bin Summoned By Prosecutors
SEOUL, SOUTH KOREA - SEPTEMBER 20: Shin Dong-Bin, Lotte Group Chairman and the younger son of Lotte Group founder Shin Kyuk-Ho, appears at the Seoul Central District Prosecutors' Office on September 20, 2016 in Seoul, South Korea. Lotte Group Chairman Shin Dong-Bin appeared for questioning over the embezzlement allegation as a part of widening probe into the country's fifth-largest conglomerate by the State prosecutors. (Photo by Chung Sung-Jun/Getty Images)Chung Sung-Jun Getty Images
Add Fortune on Google for similar content.

South Korean prosecutors asked a court on Monday to approve an arrest warrant for the chairman of the Lotte Group conglomerate on suspicion of embezzlement and breach of trust, a prosecution source with direct knowledge of the matter said.

The arrest warrant request comes after Lotte Chairman Shin Dong-bin, 61, was questioned by prosecutors in an investigation that has battered the country’s fifth-largest family-run business group since it became public in June.

It further adds to the uncertainty for the retail-to-chemicals group, which was riven last year by a bitter public feud between Shin and his older brother over who would succeed their father, the 93-year-old founder of the conglomerate.

The investigation into Lotte has already derailed a planned $4.5 billion initial public offering by the group’s Hotel Lotte arm, thwarted billions of dollars in potential acquisitions and served as the backdrop of the apparent suicide of one of the group’s top executives last month.

See also: Lotte Group Vice Chairman Found Dead in Suspected Suicide

The prosecution source declined to be identified as he was not authorized to speak to media but the Lotte Group confirmed that prosecutors were seeking an arrest warrant and said that Shin will fully cooperate in the probe.

Analysts said the group would suffer if Shin were arrested.

“Under South Korea’s owner-dominated corporate governance structure, daily operations do continue even if the owner is arrested, but major decisions such as investment, M&A and government relationships are greatly affected,” said Park Ju-gun, head of research firm CEO Score.

Shares in the group’s Lotte Shopping Co Ltd fell 1.67 percent on Monday, worse than the 0.34 percent drop in the broader market <.KS11), and are down 9 percent since prosecutors began raiding company offices on June 10. Lotte Chemical Corp shares were down 0.35 percent on Monday.

The Seoul Central District Court was expected to hold a hearing “soon” to rule on the request for a warrant for activities involving about 170 billion won ($153.52 million), the prosecution source said.

See also: The Hedge Fund Trader Who Beat the Feds

A Seoul Central District Prosecutors’ Office spokesman confirmed the warrant request but declined to give details. A court spokesman could not immediately be reached for comment.

Since the probe began in June, the court has denied arrest warrant requests for other senior group executives, including the CEOs of Lotte Home Shopping and Lotte Chemical. However, Shin’s half-sister Shin Young-ja was arrested in July on charges of breach of trust and embezzlement in a separate, but related, prosecution probe.

After the court’s decision, prosecutors also plan to seek charges against Shin’s father Shin Kyuk-ho, as well as his elder brother, Shin Dong-joo, on suspicion of offenses such as tax evasion, the prosecution source said.

See also: Seoul Prosecutors Raid Lotte Group, Casting New Doubt Over Hotel Unit IPO

TOP-HEAVY

Chaebol, the family-run business groups such as Samsung, Hyundai Motor and SK, dominate Asia’s fourth-largest economy. In the past, some chaebol leaders have been charged for corporate crimes such as embezzlement or breach of trust.

The top-down chaebol structure that allows for quick decision-making that has partly fueled the conglomerates’ expansion in past decades can also create bottlenecks.

The CJ Group, whose chairman Lee Jay-hyun was arrested in July 2013 on charges including embezzlement and was given a presidential pardon last month, last year cited Lee’s jail sentence as a factor in “considerable difficulties” the group had in executing investment plans.

Lotte’s woes could also hinder Hotel Lotte’s bid to win back a lucrative license for a downtown Seoul duty free shop. The customs agency that awards duty free licenses has said it would judge bidders on criteria including their charitable record and public opinion.

Applications for new duty free licenses are due by Oct 4.

About the Authors
By Reuters
See full bioRight Arrow Button Icon
By Michelle Toh
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in International

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
Success
Mark Zuckerberg feeds his cows macadamia nuts and beer to create the 'highest-quality beef in the world' on his $300 million estate in Hawaii
By Sasha RogelbergJuly 2, 2026
18 hours ago
Current price of oil as of July 2, 2026
Personal Finance
Current price of oil as of July 2, 2026
By Joseph HostetlerJuly 2, 2026
21 hours ago
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
Success
Americans are escaping the U.S. for New Zealand where house prices have hit a new low—but only wealthy Americans with $3 million spare can invest
By Emma BurleighJuly 2, 2026
20 hours ago
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
Success
Today, Emily Blunt is worth $80 million thanks to her Hollywood career—but she actually wanted to be a UN Spanish translator on $80K
By Orianna Rosa RoyleJuly 2, 2026
1 day ago
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
Law
Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
By Wyatte Grantham-Philips and The Associated PressJuly 2, 2026
16 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.