Lotte Group founder apologizes over family feud

SEOUL, Aug. 2 (Yonhap) -- The founder of Lotte Group on Sunday apologized over the recent bitter family tug-of-war to win control over South Korea's No. 5 conglomerate, vowing to take all necessary measures to take back what he claims was usurped by his second son. The power struggle at the group whose businesses range from retail to chemicals has come to light as Dong-bin, the second and youngest son of Lotte founder Shin Kyuk-ho, took the helm of the group's holding firm, Lotte Holdings, in Japan earlier last month. Dong-bin's rise to power, however, was deemed illegitimate by his older brother Dong-joo who claimed that his father had dismissed the younger son from his posts at the holding firm of Lotte Group. In a board room coup, Dong-bin also had sacked his father as general chairman of the Japanese holding company. Dong-joo was fired from Lotte Holdings in Japan in January. "I sincerely apologize for the pitiable situation related to Lotte Group," Shin Kyuk-ho said in a footage carried out by Korean broadcaster KBS. The 93-year-old businessman said he had never appointed Dong-bin as the heir of Lotte Group. "Chairman Shin Dong-bin is not authorized and unjustifiable (to do so), and I can't forgive him for excluding me from the group," he said indicating that all measures, including legal suits, would be taken to oust his second son from the post. Dong-joo said earlier in the day that he is confident of winning support for his return to Japan-based Lotte Holdings at a shareholder meeting of the company that effectively controls the conglomerate. "If we score a victory at the shareholders meeting, I will reinstate the board members who were sacked for supporting me, and my father as general chairman and chief executive," Dong-joo said. The schedule for the shareholders' meeting, however, is still yet to be decided. Dong-joo is set to head to Japan on Monday to gather friendly shares ahead of the event. Dong-joo said he had tried to mend fences with Dong-bin, but the younger brother refused to meet with him or pay a visit to his father, blaming him, the elder brother, for the feud. Dong-joo had recently said the younger brother also attempted to hide from his father losses from Lotte's Chinese businesses. The China and Hong Kong-based subsidiaries of Lotte's key listed units, including Lotte Shopping Co. and Lotte Confectionery Co., posted losses hovering above 1 trillion won (US$853 million) from 2011 to 2014, the data compiled by market tracker CEO Score showed. On Sunday, a close official of Dong-bin said his side, however, is confident of defeating his older brother in the latest power struggle within the business group. "We are confident of scoring a legal victory," a close official of Dong-bin told Yonhap News Agency. "The court is likely to nullify the certificates of appointment and orders released by Kyuk-ho." Last week, Dong-joo revealed documents signed by the founder, which showed that the eldest son should be named as the head of the Seoul-based Lotte Group, and that the founder has never appointed Dong-bin as the heir of the conglomerate. "Although Kyuk-ho also helped to build Lotte as what it is today, it was Dong-bin who actually worked at the forefront, and not Dong-joo or Young-ja," the official added. Young-ja is a daughter of the founder from his first marriage, while the rival brothers are from his second marriage to a Japanese woman. Young-ja also reportedly gathered executives of Lotte Group last month to ask for support in establishing a new management system led by Dong-joo. The official added that Shin Sun-ho, a brother of Kyuk-ho who supports Dong-joo, actually harbors resentment toward the Lotte founder, and said Sun-ho's stance is not in the best interest of Lotte's future. colin@yna.co.kr (END)