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Lotte Hotel has filed a 5.8-billion-won lawsuit with the Seoul District Court against 42 members of the Lotte Hotel labor union and Tan Pyong-ho, chairman of Korean Confederation of Trade Union, the largest union alliance in the nation. The hotel claims that the union strike, held from June 8 to June 29, caused huge losses for the company. The strike was brutally broken up by police who stormed the hotel on June 29.

Lotte Hotel insists in its complaint that the strike caused "about 2.3-billion-won worth of property damage and 3.5 billion won of losses from the forced closure of the hotel."

Meanwhile, the Korean Confederation of Trade Union threatened that if the government did not listen to staff at other hotels and the Korea Social Insurance Union which are currently also on strike, it would stage a series of massive demonstrations and further walkouts.

Union head Tan Pyong-ho, however, tempered the threats by saying that he would do his best to bring the unions to the negotiation table before August's vacation season if the government showed a willingness to resolve the dispute.

Regarding the investigation of sexual harrassment at Lotte Hotel, the Korea Employers' Federation stated on July 21, "It should start after the strike issue is resolved as there is a danger it could be abused by the labor union as a means of hiding the illegal activities of employees and to pressure the company."