Lotte rolls out shareholder discounts in first for a major Korean company
Holders of just one share can join the L.Honors Club and receive a coupon offering a 10 to 20 percent discount, with more benefits for long-term investors.
Lotte Department Store's Dongtan branch in Hwaseong, GyeonggiNEWS1
One share is all it takes. Lotte Shopping will start giving shareholders discounts and other perks next month, bringing a Japanese-style investor rewards program to a major Korean company for the first time.
Named L.Honors Club, the program will launch on Nov. 1, according to Lotte Shopping on Tuesday.
Shareholders who own at least one share will receive a one-time coupon offering a 10 to 20 percent discount that can be used at Lotte affiliates when they first join the club.
The coupon can be used within set limits at Lotte Department Store, Lotte Mart, Lotte Super and Lotte On. For Lotte Department Store, the discount is capped at 100,000 won ($75).
Members can also earn additional L.Point rewards based on spending. Purchases of 1 million won, 2 million won and 3 million won will earn an additional 1 percent, 2 percent and 3 percent, respectively.
Lotte Shopping shares closed at 93,800 won on Tuesday.
The company will offer additional benefits to the top 1 percent of high-value, long-term shareholders who have held at least 1,000 shares for more than a year.
Those top shareholders will receive access to department store lounges, valet and parking services, as well as discounts and free-delivery coupons for Lotte Mart, Lotte Super and Lotte On.
Eligibility will be updated every three months based on the shareholder registry.
“The program is intended to go beyond our existing dividend-focused shareholder return policy, diversify the ways we reward shareholders and strengthen our partnership with them,” a Lotte Shopping representative said.
Lotte World Mall in Songpa District, southern SeoulLOTTE DEPARTMENT STORE
In Korea, such shareholder benefit programs are offered mostly by small to midsize companies.
Food company Otoki offers shareholders a 20 percent discount coupon for Otoki Mall, while fishcake manufacturer Samjin Amook provides a 10 percent discount coupon for its official online store. K-beauty company d’Alba Global opened an online store exclusively for shareholders in August.
Shareholder perks are much more prevalent in Japan.
About 34 percent of Japanese listed companies, or 1,494 firms, ran such programs, according to a report released last year by the Japan Securities Dealers Association.
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.
