Seoul, Dec 22 (IANS) A South Korean court on Friday handed a four-year prison sentence to the 95-year-old founder of the Lotte Group and a suspended sentence to his son, the company's chairman, for embezzlement and other offences.
Chairman Shin Kyuk-ho was indicted last year along with three members of his family on charges, including tax evasion and fraud. He was also fined $3.24 million. But he avoided arrest as the court took his age into account, Yonhap news agency reported.
His son and successor Shin Dong-bin was given a suspended 20-month prison sentence. The probe into one of the country's biggest firms is part of wider efforts to stamp out corruption in South Korea.
Shin Dong-joo, the chairman's elder brother and former vice president of Tokyo-based Lotte Holdings, was found not guilty.
The court sentenced Shin Young-ja, the chairman's elder sister and head of the Lotte Foundation, to two years in prison. Seo Mi-kyung, the founder's mistress, received a suspended sentence.
Prosecutors demanded 10 years for both the chairman and his father, five years for Shin Dong-joo, and seven years each for Shin Young-ja and Seo.
The Shin family, who control South Korea's fifth-largest business conglomerate, were accused in October 2016 of paying some 50 billion won ($46 million) in wages to members of the family even though they did not work for its affiliates.
Shin Dong-bin, who will not have to serve his sentence because of the suspension, blamed his father, saying that the founder took important decisions on these matters.
Lotte Group, which is active in a wide range of business areas in South Korea and Japan, said later in a media release that it respects the court decision.
It has been involved in a series of scandals since last year, including the alleged suicide of a Lotte Group vice chairman and a bitter dispute between current president Shin Dong-bin and his brother for control of the group.
The family conflict was solved in March last year after Shin Dong-bin, the founder's second son, secured the support of shareholders.
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.
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