Lotte Duty Free Expands Support for Domestic Small and Medium Partner Companies

[Asia Economy Reporter Seungjin Lee] Lotte Duty Free announced on the 1st that it will expand win-win support for domestic small and medium-sized partner companies.

Lotte Duty Free decided to increase the payment frequency for domestic small and medium-sized partner companies from once a month to twice a month, shortening the payment cycle. According to this measure, about 400 partner companies facing difficulties in securing cash liquidity due to the deteriorating business environment caused by the novel coronavirus infection (COVID-19) will benefit. The payment for goods will be about 50 billion KRW per month, with a total of 150 billion KRW to be paid over three months from April to June.

Financial support measures for small and medium-sized partner companies have also been expanded. Last July, Lotte Duty Free established a 50 billion KRW win-win fund to provide low-interest financial support to small and medium-sized partner companies. Previously, only first-tier partners directly trading with Lotte Duty Free were eligible, but due to the increased damage to small and medium-sized partners caused by COVID-19, the scope will be expanded to include second-tier partners.

An additional support plan worth 3.5 billion KRW has also been prepared for domestic small and medium brands operating within Lotte Duty Free. This support fund will be used to strengthen brand-specific marketing activities and improve brand store environments to revitalize sales.

In addition, the ‘K-Wave’ product evaluation system, conducted last September to discover excellent small and medium enterprises, will be regularized starting this year. Selected companies will be provided with opportunities to enter Lotte Duty Free’s online and offline stores, production of promotional videos, and marketing support. Among the 15 brands selected last year, they are currently listed on Lotte Internet Duty Free, and 9 of them are preparing to enter downtown stores.

Lee Gap, CEO of Lotte Duty Free, said, “Although the entire duty-free industry is facing difficulties due to COVID-19, we have decided to expand support for small and medium-sized partner companies to join the efforts of the government and business community to overcome the crisis.”

This content was produced with the assistance of AI translation services.