Lotte Group recruits from investigative agencies

Lotte Group successfully recruited a group of former government officials, many of whom worked for the nation’s major investigative agencies, as outside directors through a vote at the annual shareholders meeting on Friday.

Most of the appointees included officials from the prosecution, the tax authority and the presidential office. Shareholders of Lotte affiliates approved the proposition.

Lotte Shopping named a former commissioner of a regional tax office and renamed a former senior prosecutor as its outside directors. Lotte Chemical designated a senior presidential secretary for civil affairs as its outside director.

Other affiliates such as Lotte Confectionary, Lotte Chilsung and Lotte Hi-Mart conducted a similar personnel policy through their shareholders gatherings.

“The incumbent administration is seeking to weed out the deep-rooted practice of so-called ‘parachute appointments’ through which people with political connections take high-paying jobs at public institutions. In contrast, there are few legal means to block conglomerates in the non-public sector from engaging in the practice,” said an official at the Financial Supervisory Service.

Other business groups such as LG, SK and KT Corp. followed suit during their shareholder meetings on the same day.

Meanwhile, Hyosung Group voted to reappoint group chairman Cho Suck-rai and two other chief executives, including Cho’s oldest son, despite allegations against them.

Some financial consumer advocates have pressured Hyosung’s shareholders, including the National Pension Service, to veto the agenda, stressing that Cho was indicted by the prosecution for large-scale tax evasion and embezzling corporate funds.

On the day, a total of 662 listed companies whose fiscal year ended in December held their shareholders meetings.

The companies include 339 firms listed on the main bourse, the KOSPI, 321 firms on the tech-laden KOSDAQ exchange and two firms traded on the KONEX for small and medium-sized enterprises.

By Kim Yon-se (kys@heraldcorp.com)