Surprise arrest of Lotte Chairman creates leadership vacuum, shares down

The shock arrest of the head of South Korea's Lotte for bribery sent shares in group firms plunging on Wednesday as investors fretted about a leadership vacuum at a challenging time for the country's fifth-largest conglomerate.

The Seoul Central Court on Tuesday sentenced Lotte Group Chairman Shin Dong-bin to two years and six months in prison in a case tied to an influence-peddling scandal that has rocked the country's business and political elite.