Relations between Korea and Japan ‘will inevitably weaken’ following Shin Dong-bin’s resignation as head of Japan’s Lotte Holdings.

Lotte Group Chairman Shin Dong-bin has given up representative rights at Japan’s Lotte Holdings as the South Korean conglomerate absorbs the shockwaves from a wider political scandal.

As reported, the Lotte Chairman was handed a two-and-a-half year prison term by the Seoul District Court last week for bribery connected to former South Korean President Park Geun-hye’s Special Advisor Choi Sool-sil. Dong-bin is understood have appealed the conviction.

Lotte Holdings’ board of directors in Japan accepted Dong-bin’s proposal to resign at a board meeting held Wednesday, TRBusiness has learned.

He will keep his position as Vice Chairman and position on the board of Japan’s Lotte Holdings.

WHAT NEXT FOR JAPAN?

Lotte says that the resignation of the rights ‘will inevitably weaken’ links between the Group’s Korea and Japan divisions, something it will seek to mitigate through ‘continuos communication’ with Japan’s management.

Lotte Duty Free’s retail presence in Japan includes its Tokyo Kansai International Airport and downtown Ginza tax free stores.

Last year, Lotte hinted to TRBusiness plans to expand its operations to Fukuoka and Osaka as part of a tranche of up to five store openings across the country’s regions.