Roundup: Lotte vice chairman found dead amid widening probe into group corruptions

Vice chairman of Lotte Group, South Korea's fifth-largest conglomerate, was found dead Friday morning as prosecutors widen a probe into corruptions of the family-run business group.

Lotte said in a text message that it confirmed the death of Lee In-won, 69, the second-in-command of the South Korean-Japanese conglomerate, through police and other sources.

Lee's death was made known hours before his scheduled appearance at a Seoul prosecutors' office at 9:30 a.m. local time as part of the ongoing criminal investigation into allegations of slush fund, tax evasion and breach of trust surrounding the group founder and the current chairman.

Lee, the group's highest-ranking executive outside the founding family and a top lieutenant to its chairman, was suspected of committing suicide as he allegedly hung himself from a tree with a necktie and a scarf, according to South Korea's Yonhap news agency report.

His body was found at about 7:10 a.m. on a walking path in Yangpyeong in Gyeonggi province, some 50 km east of capital Seoul. Police reportedly plans to carry out an autopsy to determine an exact cause of his death.

Lee, suspected of embezzlement and breach of trust and his involvement in creating slush fund and evading tax, had been a long-time executive in charge of leading the group's strategic planning division. He had been with Lotte for more than 40 years since he joined the group's hotel unit in 1973.

"There is no slush fund in Lotte Group," Lee said in a suicide note spotted from his car, according to Yonhap report. "Shin Dong-bin is a great man," the note said suggesting his close relationship with the group chairman.

His death followed a widening probe by prosecutors into corruptions surrounding Chairman Shin Dong-bin and his father and group founder Shin Kyuk-ho.

On Thursday, prosecutors questioned President Hwang Gak-kyu, one of three major aides to Chairman Shin along with the deceased. Hwang has played a key role in the strategic planning division.

Local media outlets had estimated that the chairman could be summoned for questioning as early as next week following Lee's appearance before prosecutors on Friday. Prosecutors are reportedly re-considering a summoning schedule.

Lotte's tragedy began since Chairman Shin and his elder brother Shin Dong-ju fought over a management control of the group in 2015.

The younger Shin demoted his father to honorary chairman from chairman-in-chief overseeing businesses in both South Korea and Japan. He also removed his elder brother from major group positions.

The elder Shin fought back by attempting to his younger brother from the chairmanship, ending up as failures. The family feud damaged the group's image, causing the boycotting from some of civic group activists.

Prosecutors raided the group's headquarters and offices in June, sending the highest-ever number of investigators to search and seize documents and computer hard discs.

Hotel Lotte, the group's de-facto holding company, was forced to delay its initial public offering (IPO), which had been planned as part of efforts to make its governance structure transparent. Market watchers estimated the IPO's equity financing at as much as 5.7 trillion won (5.1 billion U.S. dollars).

The group's chemical unit Lotte Chemical also withdrew from its bidding for U.S.-based Axiall amid the ongoing probe by prosecutors.

In July, Shin Young-ja, the chairman's elder sister, was arrested on charges of taking bribes in return for offering shelf space in duty free shops, operated by the group's duty free unit, to local cosmetics company. Endit