Lotte Scion Shin Dong Joo Reportedly Removes Younger Brother Shin Dong Bin As Director Of Japan-Based Packaging Company Koyjunsya
Earlier this week, Shin Dong Joo announces he plans to remove his younger brother Shin Dong Bin as the director of Japan-based packaging company Koyjunsya - the virtual company of Lotte Group.
Yonhap News Agency forecasted on the same day that Koyjunsya has a 28 percent stake in the group's holding firm called Lotte Holdings. Reports revealed that Lotte Group's businesses include luxury hotels and amusement parks, with most of it are built in South Korea and Japan.
The elder brother says he will hold a meeting within the week to seek for the removal of his younger brother as the director of the Japan-based company.
Further reports have revealed that Shin Dong Joo has a 50 percent stake in Koyjunsya, while Shin Dong Bin has a 38.8 percent stake in the company.
The younger Shin Dong Bin became the chairman of Lotte Group in August. On the other hand, Shin Dong Joo reportedly believes that he deserve the post, as noted by Korea Joongang Daily on Wednesday.
During a shareholders meeting in Tokyo on the same day, spokesperson Jung Hye Won read a statement on behalf of Shin Dong Joo.
"Shin Dong Joo personally holds a 1.62 percent stake in Lotte Holdings, and he has now acquired the position of top shareholder of Lotte Holdings with a governing stake of 30 percent," Jung states. "With this qualification, I [Shin Dong Joo] intend to fix various problems at Lotte Group and proceed with corporate reform."
The spokesperson adds that the action to remove Shin Dong Bin as the director of Koyjunsya was done "lawfully and fairly."
Jung adds that Shin Dong Bin will be replaced by Isobe Tetsu, who was the secretary of founder Shin Kyuk Ho for 20 years.
On the other hand, Lotte Group says in a dispatch that removing Shin Dong Bin from the position will have "no impact whatsoever on his management control over Lotte Group."
"Kojyunsya owns only 28.1 percent of Lotte Holdings in Japan, which is unable to influence the management rights to Lotte Group. The decision made by the Lotte Holdings shareholders' meeting on August 17 was already based on such a stake-holding structure."