“Lotte Group has requested an investigation from the police to penalize those who created and distributed false rumors (known as ‘jilashi’), such as allegations of a moratorium (payment suspension). According to legal circles on the 2nd, Lotte Holdings recently asked the Seoul Gangnam Police Station to find and punish the creators and distributors of these rumors under charges of credit damage.
On the 16th of last month, two YouTube channels posted videos titled ‘Lotte Group Facing Disbandment Crisis,’ and the next day, a rumor summarizing the related content was spread. However, while the YouTube content stitched together various reports on Lotte affiliates, leaving room for controversy by listing numerous articles, the rumors contained definitive false statements.
Specifically, the rumors included sensational claims like the declaration of a moratorium in early December, significant impact from joint guarantees due to unsold properties of Lotte Construction, difficulty in settling debts even by selling off the group’s real estate, and an expected reduction of over 50% of all staff, all of which turned out to be false. Lotte, through legal consultation, deemed that these rumors about a liquidity crisis significantly disrupted the stock prices of affiliates and caused instability in the financial and securities markets, inflicting enormous damage to the group’s credit, which led to their decision to request an investigation.
Under criminal law, those who disseminate false information or otherwise damage ‘credit’ through deceit can face up to five years in prison or fines up to 15 million KRW.”