A motion to dismiss Lotte Home Shopping CEO Kim Jae-gyeom, filed by second-largest shareholder Taekwang Industrial, was voted down at an extraordinary shareholders meeting on the 14th. Kim will retain his position as chief executive.
Taekwang Industrial had challenged Kim's management accountability, citing that intra-group transactions between Lotte Home Shopping and Lotte Shopping affiliates continued even after the board rejected a motion in January to approve such internal dealings. Taekwang also opposed Kim's reappointment in March on the same grounds.
The rejection of the dismissal motion is largely attributed to the ownership structure centered on top shareholder Lotte Shopping. Lotte Shopping currently holds a 53% stake in Lotte Home Shopping, while Taekwang Industrial owns 45%. The two sides have been at odds over management control since 2006, when they acquired Woori Home Shopping, the predecessor of Lotte Home Shopping.
Commenting on the outcome, Lotte Home Shopping said, "The company respects shareholders' exercise of their rights," adding, "We hope shareholders will also accept the results in a responsible manner and work together for the company's development."
