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Lotte Homeshopping headquarters building. (Photo = Lotte Homeshopping) |
[Alpha Biz= Kim Jisun] Taekwang Industrial, the second-largest shareholder of Lotte Homeshopping (corporate name Woori Homeshopping), said on March 12 that it will oppose the reappointment of CEO Kim Jae-kyum as a director, citing alleged illegal internal transactions.
The company said it plans to call for Kim’s resignation at the shareholders’ meeting scheduled for March 13. If Kim is reappointed, Taekwang Industrial said it will seek his dismissal through an extraordinary shareholders’ meeting, and if that effort fails, it will file a petition with the court to remove him from office.
Taekwang Industrial claims that Lotte Homeshopping continued selling consigned products from Lotte Group affiliates even after its board rejected a proposal to approve such internal transactions on Jan. 14.
According to the company, Lotte Homeshopping operates a dedicated “Lotte Department Store” category on its website, through which it sells products consigned by Lotte Shopping.
The consigned items include luxury goods, fashion accessories, casual apparel, home appliances, and food products. For example, a crossbody bag product alone was scheduled for 18 broadcast segments this month, Taekwang Industrial said.
Products from Hi-Mart, another Lotte Group affiliate, are also sold through Lotte Homeshopping. Taekwang Industrial said it identified 1,324 items listed on the platform, including refrigerators, vacuum cleaners, coffee kettles, and electric shavers.
Taekwang Industrial argues that continuing these affiliate transactions without board approval constitutes a clear violation of corporate law.
Under Article 398 of the Korean Commercial Act, internal transactions must receive prior approval from the board of directors, requiring the consent of at least two-thirds of the board members. Lotte Homeshopping’s articles of incorporation also stipulate that internal transactions must be approved by the board.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
