Seoul, South Korea – Lotte Group has announced a company-wide restructuring plan aimed at improving its financial health. As part of these efforts, the conglomerate is considering the closure of some of its underperforming overseas duty-free shops and conducting a comprehensive asset revaluation for Lotte Shopping.

During an investor relations (IR) meeting held on November 28th at the Yeoksam Teachers' Credit Union, Lotte revealed these plans.

Lotte Duty Free is exploring the possibility of closing several underperforming overseas duty-free shops in countries such as Japan, Vietnam, and Australia. The company currently operates three urban duty-free shops and ten airport duty-free shops in these regions. Additionally, Lotte is considering the sale of some of its hotels, including those located in provincial areas and four-star hotels in Seoul.

Lotte Shopping is set to conduct its first asset revaluation in 15 years, aiming to reduce its debt-to-equity ratio. The company currently holds approximately 7.6 trillion won in assets. A previous revaluation in 2009 resulted in a significant increase in asset value, leading to a 15 percentage point decrease in the debt-to-equity ratio.

Lotte Chemical, which has been facing challenges related to corporate bonds, is planning to divest non-core assets. The company aims to reduce the proportion of its basic chemical business from 60% to 30% by 2030 and increase its focus on advanced materials. Lotte Chemical will also significantly reduce its investment scale.

Lotte Construction plans to reduce its debt by approximately 1 trillion won and lower its debt-to-equity ratio to 187.7% by the end of the year.

These restructuring efforts reflect Lotte Group's commitment to improving its financial health and enhancing its long-term competitiveness.

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