Shin Yoo-yeol, head of future growth at Lotte Group, center, poses for a group photo with other Lotte executives at the opening ceremony of the company's joint venture project in Singapore in May.LOTTE
Lotte Group will launch a joint venture in Singapore next month to integrate the Asian operations of its Korean and Japanese food businesses, the company said Tuesday.
The new company will combine Korea’s Lotte Wellfood and Japan’s confectionery arm, Lotte. It had already received board approval from both companies and antitrust clearance from the relevant authorities, according to the Korean headquarters.
Shin Yoo-yeol, head of the group’s future growth division and the eldest son of Chairman Shin Dong-bin, will serve as chairman of the joint venture's board and oversee the Asian operations of the group's Korean and Japanese food businesses.
The joint venture will streamline management and decision-making by consolidating operations previously managed separately. It will also improve efficiency by integrating the two companies' manufacturing, sales and logistics networks. The partners also plan to jointly develop new products and nurture global brands through collaborative research and development.
The move is part of Lotte's broader “One Lotte” strategy, which aims to strengthen collaboration across the group's Korean and Japanese affiliates.
Last September, the group established Lotte Hotels Japan, a joint venture between Lotte Hotels & Resorts and Japan's Lotte Holdings, to jointly expand its hotel business in Japan.
The group is also pursuing collaboration between Korea and Japan in other sectors, such as attracting investment for Lotte Biologics and operating Lotte Ventures L-Camp Japan.
Lotte Group Chairman Shin Dong-bin visits the Lotte Department Store in Songpa District, southern Seoul on May 11.NEWS1
The initiative also reflects Chairman Shin’s push to accelerate growth in the food business. The chairman has argued that overseas markets should become the group's next growth engine as domestic demand weakens in both Korea and Japan, according to the company.
Shin later chaired One Lotte’s food strategy meeting, which led to the two companies expanding their cooperation to areas such as raw material procurement and cross-selling products.
"The establishment of this joint venture brings together the strengths of Lotte's Korean and Japanese food businesses across Asia," a Lotte representative said. "We aim to build mega brands and expand into new global markets by combining the competitive advantages of both companies."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
