Lotte postpones IPO after HQ raid

After its headquarters was raided Friday as part of an investigation into alleged slush funds, South Korea’s Hotel Lotte Co. is postponing its US$3.5 billion IPO, according to multiple reports.

The IPO was intended to simplify the ownership structure and improve corporate governance at the Lotte Group, as well as push forward the company’s expansion plans in the hotel space and its already huge duty free retail business.

About 200 prosecutors and investigators searched locations including Lotte Group headquarters and offices of affiliates, two prosecution sources have said.