Lotte Group Chairman Shin Dong-bin.

Japan Lotte Holdings held a board of directors’ meeting in June and elected Lotte Chairman Shin Dong-bin as chairman of the board and CEO-president of Japan Lotte Holdings.

Chairman Shin now takes the helm of all jobs occupied by the late founder and honorary chairman Shin Kyuk-ho. It means that all Lotte companies in Korea and Japan are under the direct control of Chairman Shin.

Shin said, “As outside and inside economic conditions are unfavorable, the heritance of my father’s achievements and spirit is badly needed.”

Earlier on the same day, the will of late founder Shin Kyuk-ho’s was revealed, in which his second son, Dong-bin, was picked as his successor.

It represents a sharp contrast from claims by the late founder’s eldest son, Shin Dong-ju, who has been at loggerheads with Lotte Chairman Shin over management rights of the group.

The will of the late founder was found in a safe at his office in Tokyo last month, Lotte Group said.

The late founder’s inheritors were informed of its discovery, including Lotte Chairman Shin, former chairman Shin Dong-ju, ex-chairwoman Shin Young-ja of Lotte Scholarship Foundation, and the late founder’s daughter Shin Yoo-mi.

The will is not legally binding, but it is noteworthy that the founder hand-pick Shin Dong-bin as the heir of Lotte Group.

The document was dated on March 4, 2000. The first paragraph mentions Shin Dong-bin as the heir of Lotte companies in Korea and Japan.

The second paragraph said the eldest son Shin Dong-ju should not be involved in each company’s day-to-day operations and personnel.

The third paragraph warned that the late founder’s brothers should stay away from Lotte Group’s management.

It was revealed publicly in the presence of legal representatives of the inheritors at the third panel of Tokyo family court on June 11.

The date of the late founder’s will was about the same time when Lotte Group Chairman Shin was undergoing management training lessons to be groomed as the heir of the group. In 1977, Shin Dong-bin was promoted to vice chairman of Korea Lotte, and he held positions such as president of Lotte subsidiaries, including Seven Eleven and Lotte.com.

The late founder transferred decision-making authority of major tasks to the younger Shin after writing the will. One of the group’s representative tasks involved the Lotte World Tower development project.

At that time, working-level officials suggested the construction of two officetel structures as a more feasible, but at that time Shin Dong-bin insisted on building Korea’s highest skyscraper.

The late founder was known to have frequently asked for Shin Dong-bin’s views about major tasks with a view of grooming the younger Shin as heir.

In April, Chairman Shin was elected as chairman of the board of directors of Japan Lotte Holdings. He now takes office as chairman of the board and the sole CEO-president of Japan Lotte Holdings as he took over the job, held by ex-president Takayuki Tsukuda.

A view of the Lotte World Tower, Korea’s highest landmark skyscraper. (Photos: Lotte Group)