Lotte's Entry into the Used Car Business

Lotte Rental announced on the 25th that it will enter the used car sales business as a new venture. As the largest rental car company in Korea, it expects significant synergy with its existing businesses.

Choi Jin-hwan, CEO of Lotte Rental, revealed this information at the CEO corporate briefing held the previous day. After conducting market research over the past year, the company judged the business to be viable. The company stated, "We will launch an online-centered direct management B2C platform for used cars in October this year," adding, "Our goal is KRW 2.3 trillion in sales and 130,000 units sold by 2028."

Choi Jin-hwan, CEO of Lotte Rental, is presenting at the corporate briefing held on the 24th.
[Photo by Lotte Rental]

The company has been handling about 30,000 vehicles annually through auctions while operating its rental car business. It plans to redirect these vehicles as inventory sold directly to individual customers. Having customer information for used cars is also expected to benefit the existing short- and long-term rental car business.

They will also start a new vehicle maintenance business through the Chabangjeong platform, providing basic inspection services such as engine oil changes. The company anticipates synergy with the existing rental car business here as well. Additionally, they will enter the industrial goods brokerage market using a mobile platform, matching service operators with end customers starting in October.

[Photo by Lotte Rental]

Meanwhile, CEO Choi stated that most of the major business strategies launched last year are progressing smoothly. The rental car business is being restructured based on profitability and is showing results, while overseas operations in Vietnam and Thailand have seen significant increases in operating profit. Car sharing service Green Car is expected to achieve operating profit in the third quarter of this year.

As a mid- to long-term management goal, the company aims to hold 330,000 vehicles and increase annual sales by 1.5 times compared to last year by 2028. During the same period, it targets doubling operating profit and increasing net income by 2.9 times. Recently, it also announced stock buyback and cancellation measures to boost its share price. CEO Choi said, "We will grow into the number one company in the industry through strengthening existing businesses, entering new markets, and expanding shareholder returns."

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