Lotte Home Shopping expands board with more independent directors amid Taekwang dispute
Lotte Home Shopping, the home shopping arm of South Korea’s Lotte Group, held its regular shareholders meeting in Yeongdeungpo, Seoul, and approved a board-wide expansion of independent outside directors.
Under the vote, the board composition shifted from a setup of five Lotte-recommended directors (three inside directors and two outside directors) and four Taekwang Industrial representatives (three inside, one outside) to six Lotte-appointed directors (three inside, three outside) and three Taekwang directors (two inside, one outside).
Lotte Home Shopping said the expansion of outside directors was an unavoidable step to strengthen the independence of the board and improve decision-making transparency amid what it described as Taekwang’s baseless claims.
The company added that it had thus far refrained from provoking shareholder conflicts, but Taekwang’s “unreasonable” objections and frequent external complaints have seriously hindered corporate management, according to Lotte.
Taekwang Industrial, the second-largest shareholder with roughly 45% ownership, had opposed reappointment of Lotte Home Shopping’s chief executive, Kim Jae-gyeom, according to Lotte’s statements.
Lotte also accused Taekwang of pressing for measures on several issues related to the Yangpyeong-dong office building purchase, including calls for resale of the asset, removal of the CEO, suspension of using the Lotte brand, and halting affiliate transactions.
Lotte argued that Taekwang has raised new issues each time a matter is resolved, repeatedly disrupting normal business operations.
In response, Lotte said it would pursue all legal avenues to counter unfounded claims and protect the company’s reputation, while continuing to focus on reinforcing its core business and competitiveness.
Why this matters beyond Korea: board governance and independence battles at major chaebol-linked firms can influence strategic direction, capital allocation, and risk management. For U.S. investors and partners, such disputes can affect consumer brands, supply chains, and cross-border collaborations, particularly in sectors where Lotte operates in retail, e-commerce, and consumer goods. Taekwang’s sizable stake also underscores how large shareholders can shape governance, potentially impacting decisions that ripple through regional markets and global supply networks.