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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL – Minority shareholders of Lotte Wellfood have filed a shareholder derivative lawsuit against Chairman Shin Dong-bin and 16 current and former board members, seeking KRW 27.3 billion in damages over alleged price-fixing penalties and excessive executive pay.
The group, including the Economic Reform Research Institute, announced on July 29 that the lawsuit was submitted to the Seoul Southern District Court after the company’s audit committee rejected their request to initiate legal action.
Shareholders allege that Lotte Wellfood engaged in organized collusion to fix ice cream prices through 30 executive meetings, and that the board failed to prevent the misconduct, causing financial harm to the company.
They also accuse Chairman Shin of receiving excessive overlapping compensation by serving as an executive at five to six Lotte affiliates. He reportedly earned KRW 17.8 billion in 2023 alone, and KRW 107.1 billion over the past eight years.
The lawsuit further highlights that Shin did not attend a single Lotte Wellfood board meeting in 2019, yet still collected compensation, arguing he should personally repay KRW 15.45 billion in damages to the company.
Shareholders say the action aims to hold management accountable and improve corporate governance at Lotte Wellfood.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
