Shin Dongju Files 100 Billion KRW Damages Lawsuit Against Shin Dongbin and Lotte Executives in Japan

"Shin Dongbin's Conviction in Korea Caused Losses to the Company"

Shin Dongju, former vice chairman of Lotte Holdings Japan and current chairman of SDJ Corporation, has reportedly filed a shareholder derivative lawsuit in a Japanese court seeking damages from his younger brother Shin Dongbin, chairman of Lotte Holdings, and other executives.

According to a report by the Yomiuri Shimbun on July 5, Shin submitted a complaint to the Tokyo District Court the previous day, claiming that Chairman Shin was convicted in South Korea in 2019 on charges including bribery to former President Park Geunhye's associates, which led to a decline in the company's credit rating and caused financial losses.

Shin argued that the Lotte Holdings management neglected to respond to this issue and demanded that the company be paid approximately 14 billion yen (1.322 billion KRW). A shareholder derivative lawsuit is a legal action filed by a shareholder on behalf of the company to hold directors accountable and recover damages.

At a press conference the previous day, Shin stated, "I will clarify where responsibility lies and work to normalize management." In response, Lotte Holdings told the Yomiuri Shimbun that they would refrain from commenting as they had not yet received the complaint.

Last month, Shin attempted to return to the board of directors at the Lotte Holdings shareholders' meeting, but the proposal was rejected in a vote and he was unsuccessful. He has sought to return to the board for about ten years, but has not succeeded in any attempt.