Shin Kong employees return to Taiwan

Shin Kong Mitsukoshi Department Store (新光三越) yesterday published half-page advertisements in major local newspapers, saying staff members and their families had returned to Taipei safely, amid a business dispute with its Chinese partner in Beijing.

But the retailer remained low key over the dispute with Beijing Hualian Group (北京華聯集團), saying only that it would continue negotiating with its Chinese partner over the joint venture's operation and development.

"This issue is a business dispute between two sides about the concept of management as well as about rights and obligations. Shin Kong will conduct friendly negotiations [with Hualian] in compliance with the venture contract, company charter and the related regulations," Shin Kong said in the advertisements.

The advertisements were published after Shin Kong general manager Steven Wu (吳昕達) was allowed to return to Taiwan on Saturday amid reports that he had earlier been forbidden by Chinese authorities from leaving the country, while all Taiwanese managers at the venture department store Shin Kong Place (新光天地) were removed from their positions in a kickback probe.

Shin Kong, which strongly maintained the innocence of its staff, yesterday remained tight-lipped about its 50 percent ownership of and NT$13 billion (US$300 million) investment in the venture.