Daewoo to Deliver Retail Sector to Lotte

Daewoo group's retail and distribution division will have a new master, Lotte group.
According to a source in the retail sector on March 26, Kim Woo Joong, chairman of Daewoo group and also chairman of the Federation of Korea Industries(FKI), recently met with Lotte chairman, Shin Kyok Ho, and agreed on the basic principles of the merger.
Daewoo owns various retail outlets and shopping malls such as the express bus terminal shopping center in Chungju, North Chungchong Province, Daewoo department store in Masan and the Rivera department store in Pusan, but it has decided to sell them all as part of its restructuring plan.
Lotte will initially close Daewoo's Megapolis shopping mall in Chungju after it officially purchases it for 4 million dollars, and will reopen it in May once renovations are completed. In addition to that, Daewoo is going to sell most of its department stores throughout the nation to Lotte as early as possible.
A source from Lotte said, 'The two sides discussed the sale of the chain stores, but there has not been an exact price confirmed thus far. We are not even absolutely sure about the sale of the Rivera store yet.'
Hwashik Bong : trojans@joongang.co.kr