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Tag: bribery case

  • Lotte’s chair resigns Japanese CEO role after bribery conviction

    Lotte’s chair resigns Japanese CEO role after bribery conviction

    The chairman of South Korea’s Lotte Group has resigned as the chief executive of its Japan-based holding company, following his conviction for bribery charges last week.

    Lotte Holdings held a board meeting on Wednesday and accepted Shin Dong-bin’s resignation, following a Japanese tradition of convicted chief executives stepping down, the group said in a statement. But Mr Shin will retain his post as vice-chairman of Lotte Holdings and the move will not affect his status in Lotte’s Korean units, the group added.

    Lotte Holdings is at the heart of the retail-focused conglomerate’s complex ownership structure and indirectly controls the group’s key businesses in South Korea such as Lotte Hotel and Lotte Chemical through cross shareholdings.

    Mr Shin’s resignation as chief executive of the holding company comes after a South Korean court sentenced him to two-and-a-half years in prison for bribery, in a stern warning to the country’s political and business elites. Mr Shin was found guilty of offering Won7bn in bribes to foundations of the long-time confidant of former South Korean president Park Geun-hye in return for political favours.

    Lotte said Mr Shin’s resignation would likely have a negative effect on business cooperation and synergies between the group’s South Korean and Japanese operations.

    Mr Shin is appealing the court case. However, his legal troubles could reignite a family dispute over management control at South Korea’s fifth-largest conglomerate and slow its group-wide restructuring efforts.

    Lotte officials are also concerned that Mr Shin’s detention could undermine Lotte’s major investment plans as the group grapples with ballooning losses in China.

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  • Seafood restaurants shut down in China as New Year approaches

    Seafood restaurants shut down in China as New Year approaches

    China’s premier seaside tourist region is seeking to rein in malpractice in the seafood catering sector, which has seen customers overcharged and a restaurant charged with bribery.

    A clampdown involving the China Food and Drug Administration, the Industry and Commerce Bureau (which issues business licenses), the Tourism Administration, and the Public Security Bureau has resulted in the high-profile closure of two restaurants in Sanya, the coastal city on the tropical island of Hainan that is often touted as China’s answer to Miami.

    The Liu Mei Jia seafood restaurant has had its license revoked for “soliciting customers” – reference to a practice in which restaurateurs use misleading advertising and salespeople to lure in customers who are then frequently overcharged. Also put out of business was the Qiong Mei Jia seafood restaurant, which stands accused of “bribery,” according to the local office of the Industry and Commerce Bureau, which didn’t elaborate on the charge.

    Price-bilking by seafood restaurants has become a major consumer issue in China in recent years, particularly in major tourist destinations like Sanya. This, in turn, has drawn more scrutiny onto the seafood catering trade. The latest crackdown, which featured prominently on state-run TV, comes just before the annual Chinese New Year  on 16 February 16, a peak period for dining out.