While Lotte Group is suffering from an internal strife, its rivals including Shinsegae Department Store and Hyundai Department Store are doing fairly well in the stock market.
It was largely because the two retailers may see their chances of getting duty-free shop licenses at the end of this year improve, as well as better financial results following the end of the Middle East respiratory syndrome (MERS) outbreak.
According to the Korea Exchange on August 5, the stocks of Shinsegae and Hyundai Department Store have gained 19.81 percent and 12.11 percent, respectively, since July 28 when the family feud in Lotte Group surfaced on the media.
The stock prices of the two retailers had been so weak in July until the 27th. It was because both failed to win the licenses for downtown duty-free shops and their second-quarter financial outlook was bleak due to the MERS scare. During this period, Shinsegae lost 22.76 percent and Hyundai was down 1.70 percent.
Their stock prices began jumping from the 28th when the news of two Lotte founder's brothers, Shin Dong-bin and Shin Dong-ju, fighting over management control broke out. On August 4, Shinsegae gained 8.94 percent from the previous day while Hyundai rising 5.74 percent. At 10:54 am on the 5th, the two retailers' shares were traded up 7.99 percent and 4.15 percent from the previous day's closing prices.
