Lotte, KDB create W62.7B start-up innovation fundLotte Group created an innovation fund with the state-run Korea Development Bank worth 62.7 billion won ($56 million) to invest in new technologies, Lotte announced Monday.
Eight Lotte affiliates, including Lotte Shopping, Lotte Duty Free and Lotte GRS, took part in the fund creation that will be managed by Lotte Accelerator, the conglomerate’s start-up investment arm.
Lotte hopes to discover promising start-ups engaged in retail platforms, distribution and online to offline businesses.
It marks the first time for Lotte Accelerator has jointly operated a fund with an external investor. It is also the largest fund since the investment arm was established in 2016, according to Lotte.
Lotte Accelerator now operates funds worth a total of 100 billion won.
While it previously invested in start-ups that are in the initial phase of development, Lotte Accelerator said it will now expand its investment to start-ups that have entered the growth phase.
“We hope to actively discover and invest in start-ups to raise successful cases of open innovation through this fund,” said Lotte Accelerator CEO Rhee Jin-sung.
Lotte Accelerator’s programs include L-Camp, where start-ups receive between 20 million won and 50 million won.
By Jin Min-ji