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Report: Lotte Group founder, chairman convicted on corruption charges

The founder and chairman of the multinational conglomerate Lotte Group were both convicted of embezzlement and breach of trust on Dec. 22, according to The Financial Times.

Lotte Group founder Shin Kyuk-ho and the company's Chairman Shin Dong-bin, who is also the son of the founder, were both convicted by a court in South Korea and sentenced to prison, but neither is expected to serve time in jail, according to the report.

The company's founder, Shin, who is 95, will not be required to surrender and enter prison due to his age and health condition, the report said.

The younger Shin was convicted on the same charges stemming from corruption related to bogus salaries, purchasing affiliate stocks at inflated prices, and granting contracts owned by a relative without competitive bidding, according to a separate New York Times report. Shin was given a suspended sentence and allowed to continue running the business, according to the Times report.

Lotte Group, founded in Japan in 1948 by Shin, has headquarters in Seoul as well as Tokyo and is one of South Korea's most ubiquitous brands. According to its website, Lotte Group has businesses across a number of sectors, including retail, food and beverage, hotels, construction, chemical groups, and professional baseball. The group claims to have more than 200 kinds of confectioneries sold in more than 70 countries, and claims to have the largest chewing gum share in Asia. It operates malls, restaurants, and other retail centers throughout South Korea and other Asian nations.