Lotte Group
Overview
Lotte Group is a large-scale business conglomerate originating from Lotte Confectionery, founded by founder Shin Kyuk-ho in Tokyo, Japan in 1948. Currently, with South Korea and Japan as its two main pillars, it operates in various fields such as retail, food, chemicals, tourism, and finance, and is considered one of the top five chaebol groups in South Korea. Lotte Group espouses 'customer satisfaction' and 'social contribution' as its management philosophies and oversees over 100 affiliates worldwide.
Main Content
History and Founding
The history of Lotte Group dates back to Lotte Confectionery, established in Tokyo, Japan in 1948. After achieving success in the confectionery business in Japan, founder Shin Kyuk-ho entered South Korea in 1967 and established Lotte Confectionery. Subsequently, in line with the South Korean government's economic development policies, it expanded into retail, chemicals, and tourism, experiencing rapid growth. In the 1970s, it successively established Lotte Department Store and Lotte Hotel, solidifying its position in the retail and service sectors. In the 1980s, it entered the petrochemical business through Lotte Chemical.
Major Business Sectors
Lotte Group's businesses are broadly divided into retail, food, chemicals, tourism & services, and finance.
- Retail Sector: Representative companies include Lotte Department Store, Lotte Mart, Lotte Super, and Lotte Online Shopping. In particular, Lotte Department Store has long maintained the top position in the domestic department store industry and has recently focused on strengthening its online channels.
- Food Sector: This includes Lotte Confectionery, Lotte Chilsung Beverage, and Lotte Foods. Lotte Confectionery is famous for products like Pepero and Ghana chocolate, while Lotte Chilsung Beverage produces Chilsung Cider and Del Monte juices.
- Chemical Sector: This includes Lotte Chemical, Lotte Fine Chemical, and Lotte Energy Materials. Lotte Chemical produces basic petrochemical products such as ethylene and polyethylene and has global competitiveness.
- Tourism & Services Sector: Representative companies include Lotte Hotel, Lotte World, and Lotte Duty Free. Lotte Hotel operates chains in major cities both domestically and internationally, and Lotte World has established itself as the largest theme park in South Korea.
- Finance Sector: This includes Lotte Card, Lotte Insurance, and Lotte Capital. Lotte Card is one of the major card companies in South Korea, offering various benefits and services.
Management Disputes and Governance Structure
Since 2015, with the deteriorating health of founder Shin Kyuk-ho, management disputes among siblings have surfaced. The conflict between Shin Dong-joo, Vice Chairman of Lotte Holdings in Japan, and Shin Dong-bin, Chairman of Lotte Group, led to issues regarding the governance structure of Lotte in South Korea and Japan. Currently, Chairman Shin Dong-bin oversees the group, and efforts are being made to improve the governance structure, such as transitioning to a holding company system. However, the complex circular shareholding structure and the relationship with Lotte Japan remain challenges.
Social Contribution and ESG
Lotte Group actively engages in social contribution activities through the 'Lotte Scholarship Foundation' and 'Lotte Welfare Foundation'. Recently, it has strengthened ESG management by setting carbon neutrality goals, introducing eco-friendly packaging, and expanding the use of renewable energy. Lotte Chemical has announced plans to achieve carbon neutrality by 2050, and Lotte Mart is accelerating the conversion of its stores to eco-friendly operations.
Latest Trends
As of 2024, Lotte Group is focusing on digital transformation (DX) and discovering new businesses. In particular, retail innovation utilizing artificial intelligence (AI) and big data, as well as entering the electric vehicle battery materials business, are drawing attention. In 2024, Lotte Chemical fully launched its separator business for electric vehicle batteries, and Lotte Department Store introduced an AI-based personalized recommendation system to improve customer experience. Additionally, in 2025, Lotte Hotel is accelerating its expansion into Southeast Asian markets such as Vietnam and Indonesia, and Lotte Duty Free is actively participating in global airport duty-free bids. Meanwhile, to strengthen the group's financial soundness, the sale of non-core assets and business restructuring are ongoing.
Related Topics
- [[Shin Kyuk-ho]]
- [[Shin Dong-bin]]
- [[Lotte Chemical]]
- [[Lotte Department Store]]
- [[Chaebol in South Korea]]
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