"4 Trillion Won Comprehensive Food Company Born" Official Launch of Lotte Confectionery-Lotte Food Integrated Corporation

Shin Dong-bin and Lee Young-gu Joint CEO System

(From left) Employee representative Park Min-gyu, Kim Do-young, union chairman (bakery), Lee Dong-gyu, outside director, Lee Young-gu, CEO of Lotte Confectionery, Shin Dong-bin, chairman of Lotte Group, Kenichi Tamatsuka, CEO of Lotte Holdings, Lee Jin-sung, business representative of Lotte Confectionery, Kim Il-bae, union chairman (food), and employee representative Bae Yeon-su are posing for a commemorative photo at the inauguration ceremony of the integrated corporation held on the 5th.

[Asia Economy Reporter Eunmo Koo] Lotte Confectionery and Lotte Foods have officially launched their integrated corporation, "Lotte Confectionery Co., Ltd.," on July 6. With this, Lotte Confectionery embarks on a new starting line under the banner of becoming a global comprehensive food company.

The integrated Lotte Confectionery solidifies its position as the number one company in the domestic confectionery and processed oil industries. It is the second-largest food company in Korea with assets worth 3.9 trillion KRW, annual sales of 3.7 trillion KRW, 17 domestic factories, and 8 overseas subsidiaries.

The CEO of the integrated corporation will be jointly held by Shin Dong-bin, Chairman of Lotte Group, and Lee Young-gu, Head of Lotte Group Food HQ. The existing CEO of Lotte Foods, Lee Jin-sung, will serve as the business representative overseeing the Sales Headquarters, Production Headquarters, Marketing Headquarters, and E-commerce Division. While the confectionery and food parts will be divided by each headquarters or division, the overall organization will be operated in an integrated manner.

The integrated Lotte Confectionery plans to maximize efficiency by consolidating overlapping elements such as organization and production lines across all sectors including sales, production, purchasing, and logistics. Additionally, sharing trading partners is expected to expand overseas distribution channels, facilitating global expansion. By integrating the e-commerce organization, logistics efficiency will improve, and sales growth can be pursued through product assortment diversification and joint promotions.

The integrated Lotte Confectionery intends to enhance existing shareholder value by canceling 60% of the existing food treasury stock and aims to maintain a dividend payout ratio of over 30% in the future.

To commemorate the launch of the integrated corporation, Lotte Confectionery held a launch ceremony the previous afternoon at Lotte Hotel World. The event was attended by Chairman Shin Dong-bin, major affiliate representatives, and about 300 executives and employees. Along with congratulatory messages from guests, the future vision of the integrated corporation, "LOTTE, for better food & happier life," was declared.

CEO Lee Young-gu stated, "This merger has not only expanded the business areas of both companies but also enabled higher corporate value through the integration of overlapping infrastructure, streamlining work processes, expanding future investment resources, and strengthening R&D and marketing synergies." He added, "The integrated corporation aims to become a leading food tech company through new technology research and innovation, reorganizing the entire value chain from development, purchasing, production, sales, to logistics into a data-driven management system." He also said, "We will strengthen overseas business capabilities to become a global food company and actively practice ESG (Environmental, Social, and Governance) management to grow together with society’s members."

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