[Photo by Yoo Dae-gil = dbeorlf123@]
South Korean prosecutors sought a court-issued warrant Monday to arrest the 74-year-old daughter of Lotte Group's ailing founder in an investigation into corruption and illegal business activities by the country's fifth-largest family-run conglomerate.
Lotte Foundation head Shin Young-ja has been questioned over allegations she took kickbacks from Jung Woon-ho, the jailed head of the cosmetics firm Nature Republic, in return for favorable placement in Lotte's duty-free shops.
She is also suspected of embezzling company funds by using the names of her daughters and company officials. She wast the first Lotte family member who has been grilled since prosecutors launched an investigation last month.
Prosecutors are also looking into evidence related to an alleged slush fund created by groups executives. On June 22, a former Lotte Chemical financial executive was arrested for playing a key role in evading taxes.
Through mergers and acquisitions, Lotte Chemical has become the group's most profitable unit and a key revenue source . Last year, the company took over the chemical units of Samsung Group but it scrapped a bid for US-based polyethylene manufacturer Axiall this month due to an investigation by prosecutors.
With its control tower in limbo, the group has put the break on a number of projects including the planned initial public offering of Hotel Lotte, a virtual holding company.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
