Lotte Homeshopping’s massive entertainment expenses raise questions

[THE INVESTOR] Lotte Homeshopping racked up 6.2 billion won (US$ 5.3 million) entertainment expenses in 2014 and 2015, data showed on July 6.

According to Chaebul.com’s analysis of Lotte Group’s consolidated financial statements for the 2008-2015 period, Lotte Homeshopping spent 13.9 billion won in entertainment expenses during the period. More than half of that was spent since the launch of the Park Geun-hye administration. The figure for 2013 to 2015 came to 8 billion won. Chaebul.com is a website specializing in information about local conglomerates. 

The company’s record high entertainment expenses from 2014 and 2015 are raising suspicions whether the expenditures are linked to the ongoing corruption investigation into Lotte Group.

In those two years, the company is suspected of giving bribes during the relicensing process. A number of Lotte Homeshopping officials have been indicted in the investigation.

By Choi He-suk (cheesuk@heraldcorp.com)