Lotte shares dive after the president in prison

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Shares in the South Korean giant Lotte fell sharply after the surprise arrest of the conglomerate’s chairman for corruption.

Shin Dong-bin was sentenced to two-and-a-half years in prison for his part in a corruption scandal that has shaken the country.

Investors sent Lotte Group’s share price down 7%, and Lotte Shopping of 5.5%.

Shin had been widely expected to escape with a suspended sentence.

His lawyer said he would appeal against the sentence, but warned the process could take months.

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Shin was found guilty of offering billions of dollars in bribes to Choi Soon-sil, a friend and adviser of ex-president Park Geun-hye.

“His action crushed the hopes and the faith of the community and of the people. I corrupts evil the correctness of the society,” said judge Kim Se-yun.

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Separately on Tuesday, Choi was sentenced to 20 years in prison for corruption, influence-peddling and abuse of power.

The huge corruption scandal led to the dismissal of Ms Park, the first woman president.’Flow’

In the month of December, Shin was found guilty of a breach of trust and embezzlement in a different case, but was given a suspended sentence, leaving him free to run the group.

In this hearing, the judge sentenced Shin’s father, 95-year-old Lotte Group founder Shin Kyuk-ho, to four years in prison.

Analysts have said that there is concern for the leadership of the country’s fifth-largest conglomerate.

“Lotte Group is currently in the making,” said Park Ju-gun, head of the research firm CEO Score.

“The companies are mainly national. Shin has tried to expand the Struggles abroad grows its chemical business and retail presence in Asia, but that is expected to grind to a halt – at least until the appeal judgment,”

The group generates about 30% of its sales in China, but the companies have been harmed by a political spat between Beijing and Seoul, South Korea installation of a us missile defence system. About 80% of the shops were closed in China as part of the game.

At home, Lotte duty free operations rely heavily on Chinese tourists, but has been under pressure following a crackdown on groups of tourists from China travel to South Korea.

Shin Kyuk-ho founded Lotte group in 1940, and built in a sprawling giant that today includes dozens of new units dedicated to food, retail and hotel in South Korea and Japan.

Lotte is only one of the country’s influential families, businesses, or chaebols, which are involved in the corruption scandal.

Samsung vice-chairman Lee Jae-yong was also imprisoned for making donations to Choi’s political influence, but was released at the beginning of this month.