Lotte Hotel Signs Business Agreement with NH Investment & Securities for Silver Business

(From left) Choi Seung-ho, Head of IB2 Division at NH Investment & Securities, Kim Hyun-sik, CEO of Lotte Hotel, Jung Young-chae, CEO of NH Investment & Securities, and Lee Bong-cheol, Head of Lotte Group Hotel & Service BU, are posing for a commemorative photo after signing the business agreement.

Full-Scale Launch of Premium Silver Business
Premium Service Incorporating Hotel Experience
Expectations for New Business Expansion and Social Safety Net Role

[Asia Economy Reporter Yuri Kim] Lotte Hotel announced on the 16th that it signed a business agreement with NH Investment & Securities at Lotte Hotel Seoul for the premium silver business. Attendees at the signing ceremony included Lee Bong-cheol, Head of Lotte Group Hotel & Service BU, Kim Hyun-sik, CEO of Lotte Hotel, Jung Young-chae, CEO of NH Investment & Securities, and Choi Seung-ho, Head of NH Investment & Securities IB2 Division.

The two companies plan to cooperate to promote the premium silver business in line with their vision to contribute to the improvement of elderly welfare culture in South Korea. Lotte Hotel will be responsible for discovering and developing silver business sites, while NH Investment & Securities will take on the investment role to carry out the project.

The proportion of the elderly population aged 65 and over in South Korea is expected to rise from 15.7% this year to about 37% by 2045. The aging of the baby boomer generation with high purchasing power, combined with the pursuit of independent spaces due to the COVID-19 pandemic, has led to a rapid increase in demand for hospitality services for quality senior living. The domestic long-term care service market size has sharply grown from about 3 trillion won in 2012 to approximately 10 trillion won last year.

Lotte Hotel entered the market by taking charge of operational consulting for the premium silver town being developed in the Osiria Tourism Complex in Gijang-gun, Busan, in June. The company plans to gradually expand the premium silver business as a new growth engine targeting the aging society. It intends to highlight its 40 years of accumulated hospitality service experience as a differentiating point.

Kim Hyun-sik, CEO of Lotte Hotel, said, "The business agreement with NH Investment & Securities will give more momentum to Lotte Hotel’s premium silver business," adding, "In the rapid transition to a super-aged society, we will fulfill the role of a social safety net that the public sector cannot fully provide and contribute to building a sustainable society."

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