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[LOTTE CRISIS] Shin Dong-bin’s right-hand man suspected of stashing slush funds

[THE INVESTOR] Prosecutors believe Hwang Gak-kyu, a close aide to Lotte chairman Shin Dong-bin, is a key figure behind Lotte Group’s massive slush fund creation, local news reported on June 15.

Hwang, who is the head of the operation team and president of the group, is reportedly suspected to have transferred slush funds by overstating the import price of raw materials. 

Lee Sang-sub/babtong@heraldcorp.com
Lee Sang-sub/babtong@heraldcorp.com


Seoul Central Prosecutor’s Office has secured testimony and evidence that Hwang, a petrochemical expert who began his Lotte career at Lotte Chemical (formerly Honam Petrochemical), is behind stashing the funds for the current group chairman Shin Dong-bin, who is also the head of Lotte Chemical.

According to the report, Lotte Chemical had used intermediaries based in Hong Kong and Japan to import petrochemical raw materials from abroad since 2011. Lotte Chemical would pay above-market prices to the intermediaries and later secure the leftover amount as slush funds.

By Ahn Sung-mi (sahn@heraldcorp.com)

Related article:
Who is Hwang Gak-kyu?

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