Lotte Speeds Turnaround as Jamsil Hub Tops 5 Trillion Won and Southeast Asia Grows

Lotte Group’s food, retail and hotel affiliates are leading a recovery in results, the company said. In South Korea, “Lotte Town Jamsil” posted a record by topping 5 trillion won in annual sales for the first time. Overseas, growth has continued mainly in food and retail operations in India, Vietnam and Indonesia. The chemicals business, which has faced a prolonged slump, is accelerating restructuring to protect profitability.

Lotte said Thursday that its retail affiliates are continuing to expand in Southeast Asia. A key example is Lotte Mall West Lake Hanoi, which opened in 2023. Since opening, it has maintained double-digit sales growth and has surpassed 600 billion won in cumulative sales.

Lotte Mart is also stepping up its push in Southeast Asia. It operates 63 stores in the region, including 15 in Vietnam and 48 in Indonesia. The company said it has stabilized its hypermarket business locally and is continuing to grow by focusing on groceries and daily necessities.

Food affiliates are adding momentum. Lotte Wellfood has stood out in India, with the effect of launching the merged Lotte India entity reflected in results. Sales last year rose 10% from a year earlier, and the company expects growth to continue this year. Lotte Chilsung Beverage is also strengthening its push in key overseas markets to support an improving earnings trend.

At home, growth at Lotte Town Jamsil has been notable. The complex, which includes Lotte Department Store, Lotte Hotel and Lotte World, exceeded 5 trillion won in annual sales last year for the first time. Lotte said seasonal large-scale events and differentiated content helped draw more than 60 million visitors over the year.

A central driver has been Lotte Department Store’s Jamsil branch. The store posted more than 3 trillion won in sales last year, matching 2024 and marking a second straight year above 3 trillion won. From 2021 through last year, its average annual growth rate was about 15%.

The hotel and duty-free businesses have also shown signs of recovery. Lotte Hotel said sales and operating profit improved across all regions last year, helped by a rebound in global travel demand and an increase in foreign tourists. Lotte Duty Free recorded profits for four consecutive quarters last year and returned to profitability on a full-year basis. It recently reopened its store in the DF1 zone at Incheon International Airport and expects an annual sales boost of more than 600 billion won.

The chemicals business is moving faster on restructuring to improve its fundamentals. Lotte Chemical is participating in petrochemical restructuring, including integrating naphtha cracking centers at Daesan and Yeosu. It is also pursuing a spinoff of business divisions at its Daesan plant and a merger with HD Hyundai Chemical. A company official said, “We will also work to improve profitability by shifting the business toward high value-added areas.”