Lotte Holdings Japan General Shareholders' Meeting: Former Vice Chairman Shin Dongju's Return to Management Fails Again

Lotte Holdings Shareholders' Meeting in Japan on June 27
Shin Dongju's Director Appointment Proposal Rejected for 11 Consecutive Years

The attempt by Shin Dongju, former Vice Chairman of Japan's Lotte Holdings (and Chairman of SDJ Corporation), who is the elder brother of Lotte Chairman Shin Dongbin, to return to management has failed again this year.

Shin Dongju, chairman of SDJ Corporation, is leaving the Seoul Central District Court in Seocho-gu, Seoul, after the first trial sentencing hearing related to charges of embezzlement, breach of trust, and tax evasion on the 22nd. On this day, the court acquitted Chairman Shin. Photo by Kang Jinhyung aymsdream@

According to Lotte Group on June 27, Lotte Holdings in Japan held its regular general shareholders' meeting at 2 p.m. at the Imperial Hotel in Tokyo. At the meeting, proposals submitted by former Vice Chairman Shin's side were put to a vote: ▲the agenda to appoint himself as a director of Lotte Holdings, and ▲an amendment to the articles of incorporation to prohibit individuals with proven criminal records from serving as directors. However, both proposals were rejected.

Since 2016, for 11 consecutive years up to this year, former Vice Chairman Shin has proposed his appointment as a director at the annual general meetings of Lotte Holdings in Japan, but he has never succeeded.

Shin currently holds a 1.77% stake in Lotte Holdings in Japan. Kwangyunsa, the company he represents, owns a 28.14% stake.

Lotte Group stated, "It has once again been demonstrated that former Vice Chairman Shin's return to management is difficult with only Kwangyunsa's support."

In response, former Vice Chairman Shin said, "As the largest shareholder, I have repeatedly warned of Lotte's crisis through shareholder proposals, but the board has ignored these warnings and turned a blind eye to management issues." He added, "This proposal was not only about changing the management, but also about strengthening the responsibility and function of the Lotte Holdings board of directors and ensuring that Lotte Group returns to its fundamental values." He further stated, "Regardless of the outcome of the shareholders' meeting, the call for reform to restore corporate value will continue."