This article was displayed on the ChosunBiz RM Report website at 2:34 p.m. on Jun. 12, 2026.
Taekwang Industrial filed a lawsuit seeking the dismissal of Lotte Homeshopping CEO Kim Jae-gyeom.
According to legal sources on the 12th, Taekwang Industrial filed a dismissal suit against CEO Kim with the Seoul Southern District Court on the 10th. Taekwang Industrial is the second-largest shareholder with 45% equity in Lotte Homeshopping.
Earlier, on the 14th of last month, Taekwang Industrial convened an extraordinary shareholders meeting and put forward a motion to dismiss CEO Kim, but it was voted down. Lotte Shopping, the largest shareholder, holds a superior position with 53% equity.
However, under the Commercial Act, even if a dismissal motion is rejected at a shareholders meeting, if a director has engaged in misconduct or a serious violation of laws or the articles of incorporation, shareholders with a certain level of equity may petition the court for dismissal within one month.
Taekwang Industrial maintains that Lotte Homeshopping failed to obtain the necessary prior board approval in the process of conducting internal transactions with Lotte Group affiliates. Under Article 398 of the Commercial Act, prior board approval is required for internal transactions.
In particular, Taekwang Industrial argues that CEO Kim bears management responsibility, saying that related transactions continued even though a motion to approve internal transactions between affiliates was voted down at a board meeting in January this year. For the same reason, Taekwang Industrial opposed Kim's reappointment at the regular shareholders meeting in March.
Lotte Homeshopping says there is no issue. It cites as grounds that transactions with Lotte Group affiliates are a normal business structure that has continued since the company's early days, and that the Korea Fair Trade Commission closed the matter without a separate investigation.