[Yonhap News Photo]
The ailing founder of South Korea's retail and hotel giant Lotte Group was admitted to a hospital Monday for a psychiatric test as part of a protracted battle involving his two sons for managerial control of the empire.
Shin Kyuk-ho, 94, will stay in Seoul National Unversity for psychiatric tests following a suit filed last December by his younger sister, Shin Jung-sook, who said her brother needs a legal guardian because of his deteriorating mental state.
The wheelchair-bound tycoon was tight-lipped as he was escorted by aides into the hospital.
The family feud began in late 2014 when Dong-joo, the founder's elder son who ran groups operations in Japan, was removed from his post, while Shin's younger son, Dong-bin, who runs South Korean operations, seized control of Lotte Holdings, the group's Tokyo-based holding company, in a bid to succeed his father.
In July last year, the ailing father fired his younger son. Since then, the two sons have continued to challenge each other's claims to the empire.
Shin Dong-bin, however, fought back by sacking his father, insisting his father cannot name an heir because he has been mentally incompetent with age.
The father who founded the group as an ethnic Korean living in Japan has been in his dotage without making a clear decision on his successor. His younger son now holds the support of South Korean and Japanese shareholders while his brother has described himself as the legitimate successor of his father.
Under the virtual command of Dong-bin, Lotte Shopping, the group's key unit, posted a 22 percent on-year drop in its first-quarter operating profit due to weaker operating performance in its hypermarket and home shopping businesses.
If the founder is found to have a mental problem, his younger son will consolidate his control over the sprawling business group with more than 60 affiliates. Lotte is now South Korea's largest confectionery manufacturer and the third largest in Japan.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
