[Yonhap News Photo]
The ailing head of Lotte, South Korea's fifth largest family-run conglomerate, was placed under the guardianship of an independent law firm Wednesday after a court ruled that he was mentally incompetent.
As an incompetent guardian, the Family Court designated "The Sun", a pro bono service provider led by former high court judge Lee Tae-woon, who will act independently without being interrupted by the two sons of group founder Shin Kyuk-ho.
Judge Kim Sung-woo ruled that Shin, 94, needs a guardian because he is not capable of carrying out his duty properly as group chief because of his age and ailments.
The "neutral and objective" role of a guardian is crucial in mediating family disputes, the judge said, referring to a protracted fraternal fight between Shin's two sons for managerial control of the retail and hotel giant.
In May, the ailing founder walked out of a hospital after rejecting a psychiatric test following a suit filed by his younger sister who said her brother needed a legal guardian because of his deteriorating mental state. Shin has been inactive without making a clear decision on his successor.
Wednesday's court decision came five days after Lee In-won, a Lotte Group vice chairman, hanged himself on a tree in an apparent suicide before he was to turn up for questioning by prosecutors over alleged business irregularities.
State prosecutors have launched an extensive probe into alleged tax evasion, embezzlement and other irregularities by the group's ruling family and executives.
Shin Young-ja, the founder's 74-year-old daughter, was arrested on July 7 on charges of taking kickbacks from a cosmetics firm in return for favorable placement in Lotte's duty-free shops. Group executives have been questioned or arrested for corruption and business irregularities.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
