Korean and Japanese Lotte Food Companies Accelerate 'One Lotte Synergy' with New Joint Venture

Shin Dong-bin's 'One Lotte' strategy is set to gain momentum in the food sector as Lotte Wellfood of South Korea and Japan's Lotte Confectionery prepare to establish a joint venture in Singapore early next month. The joint venture will be led by Shin Yoo-yeol, vice president and head of Lotte Holdings' Future Growth Division, who will serve as the chair of the board.

◆ Shin Dong-bin's 'One Lotte' Strategy Gains Traction with Korea-Japan Food Collaboration

Lotte announced on June 30 that it will launch a joint venture between its Korean and Japanese food subsidiaries in Singapore in early July. The boards of both companies have approved the venture, and regulatory approvals have been secured.

This joint venture is seen as the first tangible outcome of Shin Dong-bin's strategy to enhance cooperation between Korean and Japanese Lotte food companies. He has regularly chaired 'One Lotte Food Strategy Meetings' to emphasize the importance of collaboration for strengthening global competitiveness.

During a strategy meeting held in Warsaw, Poland, in September 2024, Shin highlighted the need for the Korean and Japanese Lotte food companies to work together to develop a global mega brand with annual sales exceeding 1 trillion won, identifying 'Pepero' as a primary target.

Since then, the two companies have expanded their collaboration to include securing raw materials, joint marketing, and cross-selling products. As a result, Lotte Wellfood's overseas sales last year increased by 14.4% year-on-year to 1.2047 trillion won. Japan's Lotte Confectionery also reported approximately 900 billion won in overseas sales, primarily in Vietnam and Indonesia.

The overseas growth of Pepero has been particularly notable. By strategically utilizing their distribution networks, the Korean and Japanese Lotte companies achieved a 24% increase in overseas sales of Pepero last year, which further expanded to 33% in the first quarter of this year.

The new joint venture will serve as a hub for integrating the Asian business capabilities of both countries' food companies. It is expected to accelerate the development of locally tailored new products through joint research and development, enhancing brand recognition and fostering the growth of global mega brands.
 

 

◆ Shin Yoo-yeol Expands Management Role as 'Third Generation' of Lotte

A notable aspect of the joint venture is Shin Yoo-yeol's role. As chair of the board, he will lead the synergy creation between the Korean and Japanese Lotte food companies and oversee international business strategies. This marks a significant expansion of his management responsibilities in the core food sector of the group.

Shin has rapidly broadened his role within Lotte Group. In November 2022, he was appointed as co-CEO of Lotte Biologics during the group's regular executive reshuffle for 2026, strengthening his position in the company as Lotte focuses on the bio sector as a future growth area.

Now, with the leadership of the Korea-Japan Lotte food joint venture, Shin's management stage has expanded from bio to global food business.

He has also been actively involved in on-site management. From June 26 to 30, he attended the 'THAIFEX Anuga 2026,' Asia's largest food fair in Bangkok, to assess Lotte Wellfood's global operations and encourage employees.

In April, he accompanied Shin Dong-bin on his first overseas management visit of the year, where they inspected the operations of key subsidiaries, including Lotte Department Store, Lotte Mart, and Lotte Hotel, at Lotte Mall Westlake Hanoi in Vietnam. Shin Yoo-yeol was present to review the group's essential overseas operations. This joint venture is expected to serve as a proving ground for his global management capabilities.

A Lotte official stated, "With the establishment of this joint venture, we are consolidating the Asian business capabilities of the Korean and Japanese Lotte food companies. We aim to combine the strengths of both companies to develop mega brands and explore new markets to enhance our global competitiveness."