Lotte Requests Investigation into Authors and Distributors of False Rumors about 'Group Crisis' (Comprehensive)

Request for Punishment on Defamation Charges at Gangnam Police Station

Lotte has requested a police investigation to find and punish the distributor who created and spread false rumors (information leaflets) containing recent group-related crisis rumors such as payment moratoriums.

According to the legal community and related industries on the 2nd, Lotte Holdings recently requested an investigation at the Gangnam Police Station in Seoul to find and punish the creator and distributor of the leaflets on charges of defamation of credit.

Lotte World Tower Mall exterior. Provided by Lotte Corporation

Earlier, rumors of unknown origin circulated since mid-last month in securities circles and online that Lotte would declare a moratorium in early December due to liquidity problems and reduce more than 50% of all employees, mainly in distribution affiliates. On the 16th of last month, two YouTube channels posted videos titled "Lotte Group Public Disintegration Crisis," and the next day, leaflets summarizing the related content were distributed.

As the controversy spread, Lotte Holdings and its affiliates immediately announced, "The rumors about Lotte Group's liquidity crisis currently being mentioned are groundless." Subsequently, the sensational content contained in the leaflets was also proven false.

Lotte has reported that the leaflets caused significant damage to the group's credit by shaking affiliate stock prices and creating anxiety in the financial and securities markets, and has been considering legal measures such as requesting an investigation.

However, while the YouTube content containing the Lotte Group crisis rumors was produced based on dozens of various reports and articles related to Lotte affiliates, the leaflets contained definitively false information, and it is known that the investigation request was limited to specific individuals who created and distributed the leaflets.

Meanwhile, under criminal law, those who spread false facts or otherwise damage 'credit' through deception can be punished by imprisonment for up to five years or a fine of up to 15 million won. Defamation is established when personal value is infringed, and credit defamation is established when economic evaluation, payment ability, or trust in payment intention is infringed.