APD | Lotte Corp. to sell 26-percent stake in Lotte Capital

By APD writer Alice

Lotte Corp., the holding company of South Korea's retail-to-chemical conglomerate Lotte Group, said on September 23 that it has decided to sell its nearly 26 percent stake in Lotte Capital Co. to its Japan-based financial unit to meet regulatory requirements here.

Lotte Corp. said its 25.64 percent stake in Lotte Capital, worth 333.2 billion won (US$279 million), will be sold to Lotte Financial Corp. in Japan.

Lotte Corp. said the move is part of its efforts to enhance its corporate governance structure by adopting a holding company structure.

Under the South Korean law, an industrial holding company is banned from holding a majority stake in a financial unit to prevent owners of family-run business conglomerates from exploiting a financial affiliate as their private coffers.

In May, Lotte Corp. signed a deal to sell its shares in Lotte Card Co. and Lotte Insurance Co.

(ASIA PACIFIC DAILY)