Kim Jae-gyeom, CEO of Lotte Home Shopping, attends the Lotte Group's second half VCM (Value Creation Meeting) on April 19, 2024, at Lotte Hotel World in Songpa-gu, Seoul. 2024.07.19[Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]
A motion to dismiss Kim Jae-gyeom as CEO of Lotte Home Shopping was rejected at an extraordinary shareholders' meeting held on May 14. Taekwang Industrial, the company's second-largest shareholder, had proposed the dismissal.
A representative from Lotte Home Shopping stated after the meeting, "The motion to dismiss the CEO was rejected at the extraordinary shareholders' meeting convened at the request of some shareholders. The company respects the exercise of shareholder rights. We hope shareholders will accept the outcome responsibly and work together for the company's growth."
The representative added, "Lotte Home Shopping's management will do its utmost to be a company trusted and loved by shareholders, customers, partners, and employees through responsible management."
As a result, Kim will continue in his role as CEO.
Taekwang Industrial has criticized Kim's management, citing the approval of internal transactions between Lotte Home Shopping and its affiliate, Lotte Shopping, which was rejected by the board in January but continued nonetheless.
In March, Taekwang also opposed Kim's reappointment for similar reasons.
The rejection of the dismissal motion reflects the influence of Lotte Shopping, the largest shareholder, which holds a 53% stake in Lotte Home Shopping, while Taekwang holds 45%.
The two companies have been in conflict over management rights since acquiring the predecessor of Lotte Home Shopping, Woori Home Shopping, in 2006.
Taekwang Industrial is reportedly considering filing for an injunction against Kim's duties and pursuing a lawsuit for his dismissal in court.
* This article has been translated by AI.
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