November 24, 2024

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Shin Dong-bin, CEO of Lotte Group (right), walks by a boat named “Possibility” during Lotte Chemical’s exhibition “Every Step for Green” held on May 19. (Lotte Group)

South Korean retail giant Lotte Group said Tuesday it is poised to inject 38 trillion won ($30 billion) over the next five years in the new growth-engine sectors -- health and wellness, mobility, and sustainability -- and core industry segments including chemical, retail and travel business.

Following its recent announcement to enter the biomedical contract development and manufacturing organization business, the company will pour some 1 trillion won into building a new bio factory in the country.

As for its mobility business, Lotte Rental plans to purchase 240,000 electric vehicles worth 8 trillion won and build transportation infrastructure for urban air mobility.

The group will expand investments in the chemical sector, with Lotte Chemical taking the lead in injecting more than 1.6 trillion won into the hydrogen and battery materials business. An additional 7.8 trillion won is set aside for producing widely used raw materials like flint and other value-added business by investing in infrastructure and production facilities.

The company also earmarked 1 trillion won for producing 1 million metric tons of recyclable bioplastics as well.

Also, Lotte Ventures will designate 360 billion won for startups in the country and support their overseas expansion in countries such as Vietnam and Japan.

For retail business, the group will spend 8.1 trillion won in constructing new shopping malls at Sangam-dong, Mapo-gu in Seoul, and Songdo in Incheon. Lotte Mart and Lotte Hotel plan to boost business with 1 trillion won and 2.3 trillion won in funding, respectively. An additional 2.1 trillion won will go to growing its liquor business and developing sustainable food including alternative meat.

By Byun Hye-jin (hyejin2@heraldcorp.com)