Lotte companies vow to invest 37 trillion won over next 5 years

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Lotte companies vow to invest 37 trillion won over next 5 years

Published: 24 May. 2022, 19:01 Updated: 24 May. 2022, 19:01

Lotte World Tower in southern Seoul [LOTTE CORPORATION]

Lotte companies vowed to invest a total of 37 trillion won ($29 billion) over the next five years into making their businesses more sustainable, with a major focus on biopharmaceuticals and mobility.

Lotte Corporation announced the investment plan Tuesday along with a specific breakdown and details on how the money will be used.

Some 41 percent will go to its biopharmaceutical and mobility businesses, along with construction and rental businesses, while 25 percent will go to its chemical business.

Twenty-two percent will be used in strengthening its retail business, while six percent will go to the hotel sector and another six to the food sector.

Lotte plans to use about 1 trillion won to construct a biopharmaceutical contract and development manufacturing organization plant in the country.

The move is in line with the company's ambitious goal of entering the biopharmaceutical industry. Lotte recently announced that it will purchase a Bristol-Myers Squibb bio plant in Syracuse, New York for $160 million.

Lotte Biologics, a soon-to-be-established biopharmaceutical subsidiary, will undertake the acquisition. Lotte registered a trademark for Lotte Biologics on April 27, according to the Korea Intellectual Property Rights Information Service.

Some money will be used to develop its urban air mobility business, otherwise known as air taxis, though details were not provided.

Car rental company Lotte Rental will spend 8 trillion won securing 240,000 electric vehicles.

Lotte Chemical will invest more than 1.6 trillion won into battery materials and hydrogen energy over the next five years.

Another 1 trillion won will be used to expand its bio-plastics business.

Seven-point-eight trillion won will go toward expanding the manufacturing facilities at its plants.

Retail subsidiaries will receive a total of 8.1 trillion won. Lotte Department Store plans to open multiplex shopping malls in densely populated areas such as Sangam, western Seoul, and Songdo in Incheon.

Around 2.3 trillion won will be used to improve hotel and duty-free businesses in order to lure more foreign tourists, the company said.

Another 2.1 trillion won will go toward developing next-generation food items such as health supplements and meat alternatives.

Lotte is also serious about fostering local start-ups.

Lotte Ventures will invest a total of 360 billion won into local start-ups through 2026.

BY SARAH CHEA [chea.sarah@joongang.co.kr]