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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Shin Dong-joo, the elder brother of Lotte Group Chairman Shin Dong-bin and former Vice Chairman of Japan’s Lotte Holdings, has once again failed in his bid to return to the company’s board of directors. This marks the 11th consecutive year his proposal has been rejected.
On June 27, during Lotte Holdings’ annual general shareholders meeting held at the Imperial Hotel in Tokyo, shareholders voted down Shin’s proposal to appoint himself as a director, as well as his suggested amendment to the company’s articles of incorporation to bar individuals with criminal records from holding board positions. Chairman Shin Dong-bin participated in the meeting via online conference.
Shin currently owns 1.77% of Lotte Holdings, while Kwang Yoon Sa, a company he leads, remains the largest shareholder with a 28.14% stake.
In a statement issued after the meeting, Shin said:
“As the largest shareholder, I see it as my duty to speak out about Lotte Group’s ongoing crisis and push for necessary reforms. My call for governance renewal and restoration of corporate value will continue regardless of this vote.”
He pointed to Lotte Holdings’ recent financial results, which showed a net loss of approximately JPY 162.6 billion (USD 1.16 billion) for the fiscal year ending March 2025. He further criticized the Korean operations of the group, stating, “Korean Lotte is losing favor with consumers, and even key affiliates are struggling to operate normally.”
Shin Dong-joo has been engaged in a long-standing succession and control dispute with his younger brother since being removed from directorships at several Lotte entities in late 2014 and early 2015—including Lotte Co., Lotte Trading, Lotte Properties, and Lotte Commercial Development—after internal disagreements related to the now-defunct "Purika" marketing project.
He later filed civil lawsuits seeking damages for what he claimed were unjust dismissals but did not prevail in court.
Despite continued setbacks, Shin has vowed to persist in his efforts to reform Lotte Holdings, leveraging his position as its largest shareholder.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
