Brothers' Conflict Intensifies: Former Vice Chairman Shin Dong-joo Files Lawsuit Against Brother Shin Dong-bin for Over 100 Billion Won

Former Vice Chairman Shin Dong-joo of Japan's Lotte Holdings has filed a lawsuit seeking over 100 billion won in damages against his brother Shin Dong-bin, Chairman of Lotte Group, and the management of Lotte Holdings.

On the 5th, local media, including Japan's Yomiuri Shimbun, reported that former Vice Chairman Shin Dong-joo had filed a shareholder derivative lawsuit with a Japanese court the previous day.

A shareholder derivative lawsuit is a legal process in which a shareholder takes action on behalf of the company to hold the board of directors accountable and seek compensation for the company's damages.

Demand for Accountability and Compensation from Management

According to the complaint submitted to the Tokyo District Court, former Vice Chairman Shin Dong-joo claims that the company's credit rating fell and substantial damages occurred related to the incident in which Chairman Shin Dong-bin was convicted of bribing former President Park Geun-hye in 2019.

He insists that the management of Lotte Holdings failed to respond appropriately to this situation and demands approximately 14 billion yen (around 1.322 billion won) to be paid to the company.

This lawsuit was filed shortly after former Vice Chairman Shin Dong-joo's attempt to return to management at Lotte Group was thwarted.

He attempted to secure a director position at the regular shareholders' meeting of Japan's Lotte Holdings held on the 27th of last month but was not approved. He has failed to be approved in all 11 shareholder meetings since 2016.

Image Source: Former Vice Chairman Shin Dong-joo of Japan's Lotte Holdings / News1, Chairman Shin Dong-bin / Lotte Holdings