Lotte Homeshopping CEO resummoned, this time as suspect

[THE INVESTOR] Lotte Homeshopping chief executive Kang Hyun-koo will be questioned on July 12 for his involvement in the Lotte Group(chairman Shin Dong-bin) affiliate’s alleged irregularities that include creating slush funds.

This is the second time he was summoned since July 9 when Kang was questioned as a witness. This time he will be the first Lotte CEO to be questioned as a suspect.

Kang faces allegations that he attained government approval for Lotte Homeshopping in 2015 through illegal methods, such as by lobbying the Ministry of Science, ICT and Future Planning. 

All Korean home shopping operators have to get the Science Ministry’s approval every five years.

Meanwhile, the prosecution has already confirmed that Lotte Homeshopping created slush funds, and is expected to grill Kim about how they were used.

Some of the funds are suspected to have been used to lobby the ministry officials.

Industry watchers say further investigation may trigger a full-blown exposure of yet another bribery scandal on the heels of those involving Nature Republic and Nexon Group.

So far, Lotte Group has denied all charges of bribery.

By Kim Ji-hyun (jemmie@heraldcorp.com)