How Lotte Group Is Trying to Rebound After Massive Corruption Charges

October 25, 2016, 11:26 AM UTC
Lotte Group Chairman Shin Dong-bin News Conference
Shin Dong-bin, chairman of Lotte Group, speaks during a news conference in Seoul, South Korea, on Tuesday, Oct. 25, 2016. Lotte revived plans for an initial public offering of its hotel unit, kicking off what would be a key part of a effort to improve the image of a South Korean business empire roiled by corruption allegations and feuding founding-family members. Photographer: SeongJoon Cho/Bloomberg via Getty Images
SeongJoon Cho/Bloomberg via Getty Images

Days after its founding family and various officials were indicted in one of South Korea’s biggest corruption probes, Lotte Group has announced a renewed plan to take its hotel business public.

Chairman Shin Dong-bin—who was one of the 22 current and former officials indicted last week—announced the IPO for Hotel Lotte at a press conference in Seoul Tuesday, according to Bloomberg. Shin did not say when the subsidiary’s IPO would be.

The conglomerate is also planning to restructure to a holding company format, easing up on shareholder activists who have been vocal about their concerns about transparency. Lotte has plans to invest 40 trillion won ($35.17 billion) over the next five years on mergers and acquisitions, capital, and research and development, Bloomberg reported. Other units it is said to plan to take public are Korea Seven, Lotte Data Communications, and Lotteria.

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The company reportedly put IPO plans for Hotel Lotte on hold in June over the criminal investigations. At that point, the offering was valued at about $4.5 billion, Bloomberg reports.

Shin, the group’s chairman, is set to face trial for alleged embezzlement and breach of fiduciary duty.

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