In this handout image provided by Lotte Corporation, a memorial altar of Lotte Group founder Shin ... [+]
Shin Kyuk-ho, the founder of South Korea’s Lotte Group, died on Sunday afternoon after being hospitalized in Seoul for a chronic illness, according to local news reports. He was 98.
Kyuk-ho’s sons—Dong-joo, 65, and Dong-bin, 64—are among the wealthiest people in the country. Dong-joo was ranked No. 45 on the most recent list of South Korea’s 50 Richest people with a net worth of $915 million, while his brother Dong-bin was at No. 48 with $870 million.
Kyuk-ho was born in the southeastern coastal city of Ulsan and was the eldest of 10 children. He left Korea in 1941 after graduating from a two-year course at an agricultural school in search of opportunities in Japan with just 80 yen to his name, according to the Korea JoongAng Daily newspaper. He delivered newspapers and milk until he enrolled in a night school majoring in chemistry at the prestigious Waseda University, the Korean newspaper added.
Under Kyuk-ho’s leadership, Lotte grew from a chewing gum maker established in Japan in 1948 to become the fifth-largest chaebol, or family-run conglomerate, in Korea by helping to develop the peninsula’s economy with government support following the Korean War. Lotte’s businesses now range from retail to chemicals. Kyuk-ho passed day-to-day operations of the Lotte group to younger son Dong-bin in 2011, though the patriarch retained the title of senior chairman until 2016.
Kyuk-ho and his eldest son Dong-joo had tried to unseat youngest son Dong-bin as Lotte Group chairman in 2015. Although the attempt was unsuccessful, Dong-joo was dismissed from his executive positions of the group after the feud with his brother.
More on Forbes: Billionaire Family Feud: Founder Of South Korea's Lotte Group Demoted By Own Son
Shin Dong-Bin, chairman of Lotte Group. (Photo by Jeon Heon-Kyun-Pool/Getty Images)
Lotte is famous in Korea for its snacks, department stores, duty-free shops, hotels, theme parks and baseball team Lotte Giants. It also owns the 555 meter-high Lotte World Tower, which is the tallest building in Korea and fifth-tallest in the world.
In recent years, Lotte has been focusing on growing its chemical unit. In 2016, Lotte Chemical acquired Samsung’s chemicals businesses for $2.6 billion, and its Lotte Chemical Titan subsidiary in Malaysia raised $878 million from an initial public offering in 2017, which was the Southeast Asian country’s largest listing in five years. Last year, Lotte Chemical’s $3.1 billion U.S. plant in Louisiana, a joint project with Westlake Chemical, also commenced production.
Lotte was also embroiled in a corruption investigation in 2016 that led to the indictments of Shin family members, including Kyuk-ho and Dong-bin. Kyuk-ho was sentenced to four years in prison for embezzlement and other charges, but was allowed to avoid jail time because of his poor health.
More on Forbes: South Korea's Richest 2019: Fortunes Fall For 74% Of Nation's Wealthiest Amid Trade War Woes
