Taekwang Industrial Co., a mid-sized family-run business group, has filed a suit against Lotte Shopping's (KSE:023530) takeover of a local home shopping channel, company officials said Thursday.

Taekwang, the second-largest shareholder of Woori Home Shopping with a 45.04 per cent stake, has sought to take over the home shopping channel.

But Lotte Shopping, South Korea's top department store chain operator, agreed to buy 53 per cent of the home shopping channel for 467 billion won (US$499 million).

"Lotte Shopping's takeover of Woori Home Shopping (does not meet) legal requirements... and the deal should be nullified," a company official said.

Lotte Group, the department store chain's parent, is seeking to expand its business. In April, the group failed in its attempt to acquire Carrefour SA's local unit.

Established in 2001, Woori Home Shopping reported a net profit of 48.1 billion won on sales of 246 billion won last year.