Lotte Group chairman Shin Dong-bin walks into a courthouse in southern Seoul on Monday.[Yonhap Photo]
Prosecutors demanded jail terms of up to ten years for the ruling family of South Korea's fifth-largest conglomerate, Lotte, accusing group chairman Shin Dong-bin and others of privatizing corporate assets to pursue personal interests.
Group founder Shin Kyuk-ho, 94, and his common-law wife, Seo Mi-kyung, and two sons -- group chairman Shin Dong-bin and his brother Shin Dong-joo -- have been indicted along with the founder's daughter, Shin Young-ja, who was sentenced to three years in prison in January in a separate case.
In a final hearing on Monday, prosecutors urged a criminal court in Seoul to sentence Dong-bin to 10 years in prison along with a fine of 100 billion won (889 million US dollars) and five years for his brother along with a fine of 12.5 billion won.
Seven years were asked for Young-ja and Seo with a fine of 220 billion won and 120 billion won respectively. The ailing patriarch skipped Monday's hearing, and he would appear in court later.
Prosecutors called for harsh punishment, insisting the ruling family had privatized corporate assets. "The defendants who still do not realize what's wrong should receive strict punishment to end the crime of pursuing private interests that has been repeated by the ruling family in the name of practice," they said in a statement.
The prosecutors accused them of shifting the responsibility to their ailing patriarch who was mentally incompetent because of his age and ailments. They face multiple charges including tax evasion, embezzlement, and other irregularities.
The founder was accused of evading gift taxes by handing over shares and assets to his wife and other family members. Seo, 57, is the 1977 winner of the group's Miss Lotte beauty pageant and served as a model. She has a daughter with the founder.
Lawyers called for mercy, saying the group chairman did his best to rescue Lotte, which has been in trouble due to a diplomatic row between Seoul and Beijing over an American missile shield. Lotte has been the prime target of China's retaliatory onslaught that began after the group let US troops set up a missile shield in its golf course.
This month, Lotte launched a new holding company named Lotte Corp. by overhauling four key affiliates to enhance corporate governance, transparency in management, and efficiency. Shin Dong-bin consolidated his group-wide control by holding a 13-percent stake in the holding company. Lotte Corp. shot up 10 percent to 70,400 won Monday on the first day of trading after being listed.
Group founder Shin Kyuk-ho, 94, and his common-law wife, Seo Mi-kyung, and two sons -- group chairman Shin Dong-bin and his brother Shin Dong-joo -- have been indicted along with the founder's daughter, Shin Young-ja, who was sentenced to three years in prison in January in a separate case.
In a final hearing on Monday, prosecutors urged a criminal court in Seoul to sentence Dong-bin to 10 years in prison along with a fine of 100 billion won (889 million US dollars) and five years for his brother along with a fine of 12.5 billion won.
Seven years were asked for Young-ja and Seo with a fine of 220 billion won and 120 billion won respectively. The ailing patriarch skipped Monday's hearing, and he would appear in court later.
Prosecutors called for harsh punishment, insisting the ruling family had privatized corporate assets. "The defendants who still do not realize what's wrong should receive strict punishment to end the crime of pursuing private interests that has been repeated by the ruling family in the name of practice," they said in a statement.
The prosecutors accused them of shifting the responsibility to their ailing patriarch who was mentally incompetent because of his age and ailments. They face multiple charges including tax evasion, embezzlement, and other irregularities.
The founder was accused of evading gift taxes by handing over shares and assets to his wife and other family members. Seo, 57, is the 1977 winner of the group's Miss Lotte beauty pageant and served as a model. She has a daughter with the founder.
Lawyers called for mercy, saying the group chairman did his best to rescue Lotte, which has been in trouble due to a diplomatic row between Seoul and Beijing over an American missile shield. Lotte has been the prime target of China's retaliatory onslaught that began after the group let US troops set up a missile shield in its golf course.
This month, Lotte launched a new holding company named Lotte Corp. by overhauling four key affiliates to enhance corporate governance, transparency in management, and efficiency. Shin Dong-bin consolidated his group-wide control by holding a 13-percent stake in the holding company. Lotte Corp. shot up 10 percent to 70,400 won Monday on the first day of trading after being listed.
reporter
Lim Chang-won
cwlim34@ajunews.com
