South Korean court orders arrest of Lotte Group founder's daughter

Reuters News
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Posted: Jul 06, 2016 8:46 PM

SEOUL (Reuters) - A South Korean court on Thursday ordered that the daughter of the founder of South Korea's Lotte Group conglomerate be detained on charges including breach of trust and embezzlement, a judge told Reuters.

Prosecutors had applied for a detention warrant earlier this week for Shin Young-ja, who is also a director of Lotte Group's hotel unit, said a Seoul Central District Court judge authorized to speak to media.

Prosecutors allege Shin received bribes of about 3 billion won ($2.6 million) as requests for preferential treatment for brands in Lotte Duty Free stores, a prosecution source with direct knowledge of the matter told Reuters earlier this week.

Prosecutors also allege Shin embezzled about 4 billion won from an unnamed company that she de facto controls, paid out as salaries for her daughters, the person said, declining to be identified as the investigation was ongoing.

Hotel Lotte directed questions to Lotte Duty Free. Lotte Duty Free declined comment.

($1 = 1,155.6900 won)

(Reporting by Joyce Lee; Editing by Stephen Coates)