South Korean Billionaire tycoon Shin Kyuk-ho, founder of family-run conglomerate Lotte Group, has died on Sunday at the age of 98.
The death of Lotte Group founder Shin Kyuk-ho marks the end of an era as he was the remaining survivor among the founders of South Korea’s five giant, family-run conglomerates that dominate the economy, namely Hyundai, LG, Lotte, Samsung and SK.
Shin, born in Ulsan, South Korea in 1922, moved to Japan, which ruled the country during that time, to seek better opportunities. He started working by delivering milk and newspapers and eventually founded an oil production company in 1944.
This company ended operations after the site was bombed by a US fighter jet during the start of World War II. He then started Lotte in 1948 after observing the popularity of chewing gum among US soldiers stationed in Japan.
He decided to expand the business to his home country in 1967, establishing Lotte Confectionary. It went on to become one of South Korea’s biggest family-run companies or what Koreans call “chaebol”. The bubble gum company has since then expanded into a wider range of businesses, including candy, retail, theme parks, hotels and construction.
Among the company’s well-known assets are the professional baseball team, the Lotte Giants, the New York Palace Hotel on Madison Avenue, and South Korea's tallest building, the 123-story Lotte World Tower.
The Federation of Korean Industries hailed Shin as a "pioneer" in helping rebuild post-war South Korea and claimed that his dedication to investing in the country "when South Korea was recovering from war ruins, laid the foundation for the national economy”.
Controversies at Lotte Group
Just like other chaebols, the company was tarnished by family in-fighting, allegations and convictions of widespread corruption, and growing criticism among South Koreans of their outsized influence.
In 2015, a highly publicized corporate feud occurred between Shin’s sons in a battle of control over Lotte, in which the younger son, Shin Dong-bin, emerged victorious. He currently serves as chairman of the conglomerate.
Following the feud, allegations of corruption emerged as South Korean prosecutors took notice. In 2017, Shin, his son Dong-bin and several other family members faced charges of tax evasion, embezzlement and illegal business dealings.
Shin, then 95 years old, was sentenced to four years in prison, but was allowed to remain free due to his deteriorating health.
