Chairman Shin Dong-bin Directly Invests 1.2 Billion Won in Lotte Construction

[Asia Economy Reporter Hwang Junho] Shin Dong-bin, Chairman of Lotte Group, has injected approximately 1.2 billion KRW into Lotte Construction, which is experiencing financial difficulties due to real estate project financing (PF).

According to the disclosure on the "Change in Stock Ownership of Major Shareholders" by Lotte Construction on the 22nd, Chairman Shin acquired 9,772 common shares of Lotte Construction for 1,172,542,000 KRW. Through this, the number of Lotte Construction shares held by Chairman Shin increased from 188,660 shares to 198,432 shares. The shareholding ratio remains the same at 0.59%.

Earlier, on the 18th, Lotte Construction raised 178.2 billion KRW in operating funds through a paid-in capital increase of 1,485,450 common shares. Lotte Group affiliates such as Lotte Chemical, Hotel Lotte, and Lotte Holdings also purchased a large number of Lotte Construction shares. Lotte Chemical acquired 729,874 common shares of Lotte Construction for 87,577,581,000 KRW. Hotel Lotte and Lotte Holdings acquired 717,859 shares (86,135,901,000 KRW) and 27,894 shares (3,347,001,000 KRW) of Lotte Construction common stock, respectively.

A Lotte Holdings official stated, "This was a paid-in capital increase conducted at the Lotte Group level, resulting in changes in the shareholdings of major shareholders," adding, "Funds from the overseas corporation Lotte Holdings were also injected."