Shin Dong-bin, chairman of South Korea’s fifth largest conglomerate Lotte Group charged with a 10-year jail term by local prosecution for embezzlement has sold 215 billion won ($197 million) worth holdings in Lotte Shopping Co.
Lotte Shopping on Tuesday disclosed that Shin sold off 1,002,283 shares in Lotte Shopping tantamount to 3.57 percent stake at 214,000 won apiece in after-hours trade. The shares closed Tuesday at 225,000 won, and ended Wednesday 4.44 percent down at 215,000 won.
The sale would bring down Shin’s stake in Lotte Shopping to 9.89 percent as well as the combined family member holdings to 60.45 percent.
Lotte declined to explain the reason for the sell-off, but industry watchers believe Shin was readying money to pay for his trial that begins on Dec. 22.
His control over the group won’t be affected by the sale as his stake in Lotte Corp., the holding company of the conglomerate, remains intact.
By Chung Hui-yeong and Lee Ha-yeon
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