Tag: Lotte

For anyone looking to get a round of golf in before the Lotte Sky Hill Golf Resort is turned into a military base the time to do it is now:

The South Korean military will launch negotiations with Lotte this week to buy a golf course in Seongju County in North Gyeongsang Province, which was announced as the final site to house Terminal High Altitude Area Defense(THAAD) interceptors.

The Ministry of National Defense said it hopes to deploy the U.S. missile shield system as swiftly as possible and is positively reviewing a plan to swap a golf course it owns in Gyeonggi Province with Lotte’s facility.

The golf course in Seongju sits on land spanning one-point-78 million square kilometers, including 820-thousand square kilometers of forest, and the ministry plans to purchase the whole property.

Lotte Skyhill Seongju Country Club, which operates the grounds, issued a statement immediately after the announcement of the new THAAD site last Friday, saying it will positively consider the government’s decision given the gravity of the current national security situation.

It was made known that Lotte will continue the operation of the golf course while it is holding negotiations with the Defense Ministry.  [KBS World Radio]

You can read more at the link.

It has long been suspected that the Lotte Sky Hill Golf Course would be the final site for the deployment of the US THAAD battery and the ROK government has finally made it official:

South Korea selected a golf course in the southeastern part of the nation as the “final” site for an advanced U.S. missile defense system to better counter North Korea’s evolving missile and nuclear threat, the defense ministry said Friday.

The decision comes nearly three months after Seoul and Washington originally chose the Seongsan anti-aircraft missile base in Seongju, 296 kilometers southeast of Seoul, to host the Terminal High Altitude Area Defense (THAAD) system by 2017.

“We have conducted a simulation-based evaluation on three alternative sites in Seongju. The test results showed the Lotte Skyhill Country Club is the most optimal site for THAAD in terms of six principles,” Moon Sang-gyun, a spokesman for the Ministry of National Defense, told Yonhap News Agency.  [Yonhap]

You can read more at the link.

This is probably not much of a surprise to people following this issue:

The militaries of South Korea and the United States are expected to announce a golf course as the new site for an advanced American antimissile system this week, a defense official here said Sunday.

According to the defense ministry official, evaluations for three candidate sites to host the Terminal High Altitude Area Defense (THAAD) system in Seongju County, located in the southeastern part of the nation, “are virtually complete.” The announcement will likely be made before the end of September after the military briefs Seongju residents on its decision.  [Yonhap]

You can read more at the link, but the government still faces two problems before the THAAD site can be established.  First of all, according to the article Lotte wants $90.6 million to hand over the golf course which will require additional funds from the National Assembly.  The second issue they face is that the citizens of Gimcheon plan to launch full scale protests to stop the THAAD deployment.

Dead men tell no tales:

Lotte Group Vice Chairman Lee In-won was found dead on a hiking trail in Yangpyeong, Gyeonggi, Friday morning, a few hours before he was to be questioned by prosecutors investigating corruption in the group.

The 69-year-old vice chairman was often described as the second-in-command of Lotte Group after Chairman Shin Dong-bin, or Shin’s right-hand man. He was the most powerful figure in the group outside the Shin family, managing all operations at some 90 Lotte affiliates.

Lee’s body was discovered lying on the ground next to a tree by a man in his 60s taking a morning walk, who called the police. It was around 7:11 a.m. and Lee was already dead when the man found him, according to police.

Police concluded Lee hanged himself on the tree using a tie and a scarf, but that the tree branch snapped.

“There is no extraordinary external injury, other than his neck showing signs of being hanged,” police said. “No signs that would point to possible murder or homicide.”  [Joong Ang Ilbo]

For Lotte the whole corruption case, family in-fighting, Lotte being embroiled in the THAAD controversy and now a suicide is playing out like a bad Korean drama.

For anyone that owns Lotte Group stock, now may be the time to start dumping it:

Lotte Group has been dragged into the controversy over where Korea deploys the controversial U.S. anti-missile battery, after its golf course in Seongju County, North Gyeongsang Province, emerged as the most probable alternative site.

Korea’s fifth-largest family-controlled conglomerate fears its duty free stores, hotels and other businesses that cater to Chinese visitors will be adversely affected if the government decides to install a Terminal High Altitude Area Defense (THAAD) battery at the Lotte Skyhill Country Club (CC), north of downtown Seongju. Lotte officials are also worried that its businesses in China will suffer.

Lotte is unlikely to get fair value for the golf course because the government offers compensation based on the property’s appraisal value, which is much lower than the market price.

However, the conglomerate is not in a position to publicly oppose the possible THAAD deployment to one of its most profitable golf clubs because its Chairman, Shin Dong-bin, his family members and heads of Lotte units are under investigation on allegations of breach of trust, embezzlement and other irregularities. [Korea Times]

You can read more at the link, but it will be interesting to see the Chinese reaction if Lotte is forced to sell the golf resort.

For the residents of Seongju they will need to decide if they still care about the THAAD deployment if its moved to the alternate site that is no longer in their backyard:

Residents living near a government-chosen site for a U.S. anti-missile system failed Saturday to discuss whether to review an alternative location due to opponents’ protest.

Residents of the southern county of Seongju held a meeting to discuss whether they can consider picking an alternative site for the government’s move to deploy the Terminal High Altitude Area Defense (THAAD) inside the county.

But they failed to reach a consensus over whether to review the alternative location as some of them insisted that the government should scrap its plan to deploy a THAAD battery on their county. [Korea Times]

You can read more at the link, but here is a Google Earth image I put together that shows the two proposed THAAD locations:

As the image shows the problems with the THAAD deployment moves from Seongju’s backyard to Gimcheon’s.  So will the people of Gimcheon now complain about the deployment?  I guess time will tell, but that is the problem with THAAD in South Korea it will always be radiating over someones backyard.

One thing for sure is that the cost of the deployment of THAAD is going to skyrocket by having to purchase or lease the Lotte Sky Hill Golf Resort land from the Lotte corporation compared to deploying the THAAD on government owned ROK Air Force land at the first THAAD site outside of Seongju.

The whole issue with the succession issues and now government raid of Lotte Group is playing out like a Korean television drama:

Prosecutors raided the headquarters of South Korea’s retail giant Lotte Group, as well as its six affiliates, on Friday over allegations of embezzlement and malpractice.

The Seoul Central District Prosecutors’ Office said it sent some 200 investigators to 17 places, including the group’s headquarters in central Seoul, its major affiliates and the homes of some executives.

Hotel Lotte Co., TV channel Lotte Homeshopping and its key retail unit Lotte Shopping Co. were all raided.

Prosecutors said they confiscated computer hard drives, accounting books and other documents in their asset transactions.

Travel bans have been put out for some of the company’s senior officials, according to prosecutors. Some of the executives are accused of making secret funds by exaggerating unit prices in contracts with their subcontractors.

Prosecutors also suspect the group created slush funds while making transactions between its affiliates.

“We could no longer postpone the raid as there have been tips that evidence was being destroyed,” a senior prosecutor said.

The conglomerate, which has sprawling businesses in both South Korea and Japan, has been riddled with a series of scandals from last year, including a high-profile fight between brothers for managerial control and the recent prosecutors’ probe into the group’s duty-free business unit.

Hotel Lotte Co., which has been preparing to list its shares later this month, postponed the proposed initial public offering (IPO) to next month as its senior officials have come under investigation over alleged bribery.

Prosecutors raided the hotel unit and the house of Shin Young-ja, the head of Lotte Foundation and daughter of group founder Shin Kyuk-ho, over the allegations last week.

The 74-year-old Shin and other company officials are suspected of receiving kickbacks from Jung Woon-ho, chief of the scandal-ridden cosmetics brand Nature Republic, in return for favorable space in Lotte’s duty-free shops. Both Shin and Hotel Lotte flatly denied the allegations.  [Yonhap]

You can read more at the link, but I wonder if we see Mr. Shin show up in court in a wheel chair?

It's son vs son in a battle for control of South Korea's huge Lotte Group. http://t.co/mT2SBHAkv3 pic.twitter.com/dgmaZ76Abc

— Alastair Gale (@AlastairGale) August 6, 2015

Shown is the Lotte World Tower being built in southeastern Seoul on March 24, 2015. The construction of the 100th floor of the building was completed on the day. It will be 123 stories when completed by the end of the year. (Yonhap)

It is hard to believe there has never been a woman in charge of one of Lotte’s Department stores until now:

Although women play a limited role in management at conglomerates, their presence is slowly growing. Lotte Department Store named two female department store managers on Monday.

Women have headed smaller stores and outlet malls for the group before, but none have ever been put in charge of a department store branch.

Promoting the two women reflects Lotte Chairman Shin Dong-bin’s announcement last year that he would put more women in higher positions.

Lee Min-sook will be the chief manager of Lotte Department Store in Gwanak District, southern Seoul, while Lee Joo-young will take the top position at the Ansan branch in Gyeonggi.  [Joong Ang Ilbo]

You can read more at the link.