Lotte Group opens to outside biddersLotte Group has decided to reduce transactions among affiliates and open trade to outside companies, including small and medium enterprises (SMEs).
The decision applies to businesses worth 350 billion won ($305.8 million) annually: 155 billion won in logistics, 50 billion won in system integration, 40 billion won in advertising business and 105 billion won in construction.
The move came after the National Assembly on Tuesday approved flagship legislation of the economic democratization initiative that strengthens penalties for unfair internal transactions by owners of conglomerates and their families for personal gain.
Lotte Group decided to switch to competitive bidding for delivery of oil to Lotte Logistics and for production of advertising materials and television commercials for Lotte Department Store, Lotte Confectionery and Xylitol Gum. Competitive bidding will also apply to Lotte Department Store fliers.
Lotte expects the opening of advertising business will not only expand opportunities for SMEs, but will also raise competitiveness within the group.
BY KIM JUNG-YOON [firstname.lastname@example.org]