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Lotte Corporation eyes renewed competitiveness with AI foundation

Published: 27 Feb. 2026, 09:17

A humanoid robot staffs a convenient store concept, the AX Lab 3.0. [LOTTE CORPORATION]

Lotte Corporation is carrying out a conglomerate-wide structural overhaul in a bid to strengthen its fundamental competitiveness with the application of AI enhance operations.

In the petrochemical sector, the company will downsize its commodity petrochemicals business while expanding its high functional materials sector and pushing its environmentally friendly business to establish a long-term growth foundation.

Lotte Chemical, meanwhile, has committed 30 billion won ($20.8 million) to build a factory at the Yulchon Industrial Complex in Yeosu, South Jeolla, with the aim of completing construction this year. The 500,000-ton-per-year facility will be the largest single compound production plant in Korea, supplying highly functional materials tailored to key industries.

To improve productivity, the company is turning to AI. The Yulchon factory has enhanced automation and safety by adopting AI-based quality testing systems, packaging robots and automated warehouses. The company’s “AI Color-matching System” has improved daily productivity 50 percent.

Lotte Energy Materials is responding to demand for a high value-added circuit copper foil for AI, while focusing on the high-end elecfoil industry. The company is accelerating the shift of the factory lines in Iksan and renovating the factory in Malaysia to produce the product for Energy Storage System and mobiles. The affiliate aims to completely change the Iksan lines by 2027.

Lotte Fine Chemical is advancing with a focus on specialty materials. Newly built factories for nutraceutical cellulose will start operations this year. Last January, CelloFAM was certified as an innovative product by the Public Procurement Service. The company is also aiming to break into the global market with environmentally friendly specialty materials. AI will also contribute to the research and development of new materials.

Lotte Innovate is expanding its business to physical AI with a goal of industrializing its Robot as a Service model while building a service that can reduce expenses and streamline management, starting with the establishment of an institution that can take exclusive responsibility for physical AI and robots in August 2025.

The affiliate aims to build a humanoid for every industrial area, from logistics to production, construction, food and beverage and the service sector, which are anticipated to increase operational efficiency and safety.

On Feb. 2, in collaboration with Korea Seven, the company unveiled a convenience store concept, the AX Lab 3.0, featuring humanoid robots and AI. The store is located on the first floor of the Lotte Innovate building, serving as a testbed, with its AI platform Aimember providing customer guidance, product inspection and environment monitoring.

BY LEE DAHYUN [[email protected]]

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