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| Lotte World Tower in Seoul / Korea Times file |
By Kim Hyun-bin
Lotte Group is paying keen attention to whether Chairman Shin Dong-bin will be included in the government's planned special pardons for Buddha's Birthday on May 8, as the conglomerate needs leadership stability to push ahead with its entry into bioscience, healthcare, mobility and other new businesses, according to company officials Tuesday.
Shin was sentenced to two years and six months in prison suspended for four years in connection with the national corruption scandal that put former President Park Geun-hye behind bars. Shin was accused of bribing the former president by offering 7 billion won in exchange for business favors for Lotte's duty free business.
Five business lobby groups including the Korea Chamber of Commerce and Industry (KCCI), and the Korea International Trade Association on Monday called for the Moon Jae-in administration to grant special pardons for Samsung Electronics Vice Chairman Lee Jae-yong and Lotte Group Chairman Shin Dong-bin.
"Lotte Chairman Shin and Samsung Electronics Vice Chairman Lee Jae-yong both have similar restrictions if they are on parole or subject to a probation period," a KCCI senior official said. "Also, Lotte has suffered from the COVID-19 situation and announced its intent to invest in new businesses, so the big picture looks different when Shin is leading the M&A efforts or establishing new businesses compared to watching from the sidelines."
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| Lotte Group Chairman Shin Dong-bin |
Lotte Group has set bio, health care, and future mobility as the future growth engines of the company, and is expanding its presence in the field through the establishment of related subsidiaries and large-scale MOUs.
"Lotte Holdings plans to directly invest and nurture the bio-healthcare business," Lotte Holdings Vice Chairman Lee Dong-woo emphasized during the company's regular shareholders meeting earlier this month.
According to the company, Lotte Healthcare is the leading business. Lotte Healthcare is a wholly owned subsidiary of Lotte Holdings with an investment of 70 billion won. Even though the industry has high growth potential, there is no dominant platform in the local market and Lotte is striving to build an integrated online and offline healthcare platform through M&As. Lotte recently hired an M&A expert who led Wadiz investment and the acquisition of Ministop and appointed him as the first CEO of Lotte Healthcare.
Industry officials say the nature of the health care and bio businesses, large-scale M&As or investment should follow to strengthen initial capabilities.
"Lotte is seeking to increase investments in health care, bio, and even metaverse and UAM businesses," a Lotte Group official said.
Lotte carried out 12 M&As and equity investments exceeding a total of 1 trillion won last year alone.
"Efforts to improve mid- to long-term corporate value are the key to creating a company with competencies and promising future growth. We have to focus our investments to attract new clients and enter new markets," Chairman Shin said in a CEOs meeting earlier this year.
The company is also promoting a comprehensive mobility business that encompasses electric vehicle materials, charging infrastructure, and urban aviation through its subsidiaries.
Lotte Group and Hyundai Motor Group have decided to install 5,000 electric vehicle (EV) high-speed charging facilities nationwide by 2025. Meanwhile, Lotte Rental also acquired a 13.9 percent stake in Socar for 183.2 billion won last month for market leadership in the mobility sector along with the establishment of the mobility business division.
