Lotte Group under investigation over governing structure, possible tax evasion

A thorough investigation into retail giant Lotte Group is picking up a head of steam.
Korea’s Fair Trade Commission and the Financial Supervisory Service have separately requested Lotte Group provide them with related information.
They are looking into Lotte’s complicated governing structure and possible tax evasion, in light of the nasty family feud within the founder’s family.
On top of that, the National Tax Service has been leading an investigation into Daehong Communications, the group’s affiliated advertisement firm.
But Lotte Group has claimed that probe is a separate issue,… as it began last month, before the family feud kicked off.
The NTS is believed to be studying related data on the group’s advertisement arm, as Lotte Hotel, the de facto holding company of the group’s Korean business units, owns a controlling stake of 12.eight percent in the firm.
The tax agency’s probe has led to speculation the NTS may be looking into other parts of the group, not just the communications firm.

Lotte Group’s recent revelation of its opaque governance structure could even lead to the creation of a new law.
The main opposition New Politics Alliance for Democracy and a dozen other minor party members have proposed a bill called the “Lotte Law.”
It would be aimed at stopping conglomerates from seeking loopholes in cross-shareholdings through controlling overseas affiliates.
Shin Se-min, Arirang News.