(Yonhap)

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A massive hacking incident at Lotte Card Co. has prompted investigations by financial regulators, leaving Lotte Group unsettled despite no longer owning the card company.

Though Lotte Card retains the “Lotte” name, its majority shareholder is private equity firm MBK Partners, making it unrelated to the conglomerate.

For consumers, however, the brand association remains strong, raising fears within the group that the scandal could tarnish Lotte’s broader reputation.

The Financial Supervisory Service and the Financial Security Institute on Tuesday launched on-site inspections into the breach, focusing on whether customer data was leaked and assessing risks of secondary damage. The probe has highlighted weaknesses in Lotte Card’s security framework.

Despite having sold the card unit in 2019 to comply with Korea’s separation of finance and industry laws, Lotte Group now finds itself indirectly impacted by the incident.

MBK acquired a 79.83 percent stake in the company with Woori Bank as part of a consortium, but opted to keep the “Lotte Card” name, citing branding costs and customer trust.

“Due to MBK’s poor oversight, Lotte Group has been forced to shoulder reputational damage,” said an industry insider. “With its strong consumer-facing businesses, the group can only hope this crisis is resolved quickly.”