[Shin Kyuk-ho Passes Away] Lotte Shares and Real Estate Worth 1 Trillion Won... Attention on Inheritance Outcome

Lotte Holdings and Major Affiliates Hold Shares
Incheon Golf Course Real Estate Valued at 450 Billion Won
Also Owns Japan's Koyuunsa and Lotte Holdings
Group States "Decision to Be Made by Bereaved Families"

[Asia Economy Reporter Cha Min-young] Shin Kyuk-ho, Honorary Chairman of Lotte Group, passed away on the 19th at the age of 99, drawing attention to the method of inheritance distribution. Shin's personal assets, including real estate and stocks, are estimated to exceed 1 trillion won.

According to the business community on the day, as of the first quarter of this year, Honorary Chairman Shin held shares in listed companies in Korea such as Lotte Holdings (3.10%), Lotte Chilsung Beverage (1.30%), Lotte Shopping (0.93%), and Lotte Confectionery (4.48%). He also held shares in the unlisted company Lotte Property & Development (6.87%).

In real estate, he owned a golf course site of 1,667,392㎡ in Moksang-dong, Gyeyang-gu, Incheon. The value of this land is estimated to be around 450 billion won.

In Japan, he was known to hold shares in unlisted affiliates such as Kwangyunsa (0.83%), Lotte Holdings (0.45%), LSI (1.71%), Lotte Green Service (9.26%), Family (10.0%), and Krispy Kreme Doughnuts Japan (20.0%).

Since it is a personal inheritance, the distribution method and procedures have not been disclosed. Until now, the management of Honorary Chairman Shin's assets has been entrusted to the nonprofit organization Seon, which was appointed as a limited guardian (legal representative) since 2017. Limited guardianship is a system where a legal representative acts on behalf of a person who lacks the capacity to handle affairs due to old age, illness, or other reasons within a certain scope.

With the passing of Honorary Chairman Shin, the limited guardianship ends and the inheritance procedures according to the law commence. If there is a will, the inheritance process will proceed accordingly. However, the timing of the will's creation could be a significant variable. If the will was written when dementia symptoms had progressed and decision-making ability was lost, the validity of the will may not be recognized.

Although Honorary Chairman Shin left behind a considerable amount of personal assets, it is expected that the distribution issue will not significantly affect the management rights of Lotte Group. Currently, Lotte Group operates under the one-top management system of Chairman Shin Dong-bin.

A Lotte Holdings official stated, "The inheritance distribution issue is a personal matter of Honorary Chairman Shin and is to be decided by the bereaved family," adding, "The holding company has no intention of officially expressing a position later on."