Shin Dongjoo Signals Shareholder Action with Purchase of 15,000 Lotte Holdings Shares

Laying the Groundwork for Legal Action to Hold the Board Accountable
"As the Eldest Son, I Am Concerned About Lotte's Crisis... Will Fulfill My Role as a Responsible Shareholder"
Last Month, Filed a 140 Billion Won Damages Lawsuit in Japan

Shin Dongjoo, Chairman of SDJ Corporation and the eldest son of the late Lotte founder Shin Kyukho, has purchased 15,000 shares of Lotte Holdings, signaling his intention to exercise shareholder rights.

On August 1, Chairman Shin announced that he had acquired approximately 15,000 common shares of Lotte Holdings (valued at 420 million won at market price) through on-market purchases. This amount exceeds one ten-thousandth of the total issued shares of Lotte Holdings (104,909,247 shares).

Previously, Chairman Shin had sold all of his shares in Lotte Holdings and other domestic Lotte affiliates, securing approximately 1.4 trillion won in cash.

Chairman Shin’s renewed share acquisition appears to be aimed at establishing a basis for potential legal action to hold the board of directors accountable in the future. According to Korean commercial law, a shareholder who holds more than one ten-thousandth of issued shares for at least six months is eligible to file a shareholder derivative suit.

Through this purchase, Chairman Shin plans to call for the restoration of transparent management within the Lotte Group. As civic groups and institutional investors are strongly demanding greater management transparency and enhanced shareholder value from Lotte affiliates, he intends to take substantive action in response.

Chairman Shin Dongjoo stated, “As the eldest son of the late founder Shin Kyukho, I am deeply concerned about the current situation of the Lotte Group,” adding, “I will fulfill my responsibilities as a shareholder to improve governance and restore ethical management.”

Meanwhile, last month Chairman Shin filed a shareholder derivative suit with the Tokyo District Court, seeking approximately 13.4 billion yen (about 134 billion won) in damages from Lotte Group Chairman Shin Dongbin and the CEO of Lotte Holdings Japan, and an additional 965 million yen (about 9.6 billion won) in damages from six directors including Chairman Shin himself, totaling approximately 14 billion yen (about 140 billion won). At the time, Chairman Shin explained the lawsuit by stating, “The board’s repeated failure to impose substantial sanctions or hold anyone accountable for repeated legal violations and management failures has caused significant damage to the company.”