South Korea prosecutors raid more Lotte Group firms

South Korea's Lotte Group said prosecutors are conducting additional raids on at least ten units including Lotte Chemical, heaping further pressure on the sprawling beer-to-petrochemicals conglomerate.

Lotte Chemical, Lotte Confectionery Co Ltd and unlisted Lotte Engineering and Construction were among the firms raided, a spokesperson for the country's fifth-largest conglomerate said.

A Lotte Chilsung Beverage Co Ltd spokesperson also said the firm was being raided.

The new raids follow raids on Friday on the offices of Lotte Group and several Lotte companies including unlisted Hotel Lotte.

People familiar with the matter have said the Friday raids, which involved about 200 prosecutors and investigators, were part of an investigation into a possible slush fund.

The Seoul Central Prosecutors' Office could not be immediately reached for comment.

The investigators' probe has already led to the cancellation of an up to $4.5 billion initial public offering for Hotel Lotte. Lotte Chemical, the conglomerate's biggest listed unit, has also bowed out of bidding for US-based Axiall Corp in the wake of raids.