Lotte to Invest 37 Trillion Won Over 5 Years... "Full-Scale Activation of Economic Vitality Investment"

Promotion of New Growth Theme Projects... Expected Revitalization of Domestic Industrial Ecosystem
Resumption of Expanded Facility Investment in Distribution and Tourism Industries Weakened Since COVID-19

On the 19th, Shin Dong-bin, Chairman of Lotte (right in the photo), visited the Lotte Chemical exhibition "Every Step for Green" and examined the "Possibility" ship made from a self-developed HDPE material that is 100% recyclable.

[Asia Economy Reporter Yuri Kim] Lotte will invest a total of 37 trillion won over the next five years in new businesses and more. Including the new growth themes of Health & Wellness, Mobility, and Sustainability, the company plans to focus investments on core industries such as chemicals, food, and infrastructure to revitalize the regional economy and invigorate the domestic industrial ecosystem. It also plans to expand facility investments to strengthen the distribution and tourism industries, which have been weakened since COVID-19.

In the Health & Wellness sector, Lotte, preparing to enter the contract development and manufacturing organization (CDMO) business for biopharmaceuticals, is pushing forward with the establishment of a domestic factory worth 1 trillion won following the acquisition of overseas plants. In the Mobility sector, investments will focus on urban air mobility (UAM), targeting demonstration flights this year, and electric vehicle charging infrastructure. The UAM business will support the construction of domestic transportation infrastructure linking ground and air based on the group’s offline bases. Lotte, which has also begun full-scale operations of charging infrastructure businesses such as installing complex charging stations linked with retail and hotel operation stores, plans to expand annual charger production capacity to over 10,000 units through facility investments. Lotte Rental will also introduce 240,000 electric vehicles worth 8 trillion won, contributing to the activation of the electric vehicle ecosystem.

The chemical business group will gradually increase investments in the sustainability sector. Lotte Chemical will invest more than 1.6 trillion won over five years in hydrogen and battery materials businesses. A joint venture with domestic and international strategic partners will be established within the year, aiming to build domestic hydrogen infrastructure. The company is promoting hydrogen charging station and power generation businesses and investing in battery electrolyte businesses. In line with the resource circulation trend, it plans to invest 1 trillion won by 2030 in recycling and bioplastics businesses to produce 1 million tons of eco-friendly recycled products. The chemical business group will also invest 7.8 trillion won in facility investments and production expansions to strengthen competitiveness in high-value specialty businesses and general petrochemical businesses. This is expected to create local jobs and revitalize regional economies.

Lotte is also focusing on supporting and investing in domestic startups. Lotte Ventures plans to expand domestic startup investments to 360 billion won by 2026. In addition to Lotte Ventures’ L-Camp (a startup incubation and investment program), investment areas will be expanded to specialized fields related to national health such as food tech (future diets) and healthcare. Through global venture capital expansions in Vietnam, Japan, and other countries, Lotte Ventures provides accumulated infrastructure and experience assets to domestic startups to support their overseas expansion. The corporate value of 152 domestic startups that have gone through Lotte Ventures’ L-Camp (as of May) has grown 3.7 times compared to before L-Camp support, reaching 1.6 trillion won.

The distribution business group will invest 8.1 trillion won to lead commercial district development and job creation. Lotte Department Store plans to develop large-scale complex malls with high employment inducement effects in Sangam-dong, Mapo-gu, Seoul, and Songdo, Incheon, and will sequentially renovate key branches such as the main store and Jamsil branch. Lotte Mart will invest 1 trillion won to expand specialized stores leading new shopping cultures such as Zetaflex, Max, and Bottle Bunker. The hotel business group will invest 2.3 trillion won in hotels and duty-free facilities, key tourism infrastructure, to attract overseas tourists. The food business group will also invest a total of 2.1 trillion won to expand its growing portfolio centered on wine and whiskey, and to develop future foods and new products such as alternative meat and health functional foods.

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