Shin Dong Bin's "New Lotte" financial throw... Declare the sale of credit card and credit card companies
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Hotel Lotte to be listed and incorporated as a holding company
It is inevitable to clean up the financial business in the group.
Helping Chairman Shin to strengthen his managerial control
A Study on the Major Reorganization of Distribution and Petrochemicals
Shin Dong Bin
After Lotte Group Chairman Shin Dong-bin was released on probation, the "New Lotte" is speeding up. After investing $50 billion (50 trillion KRW) in five years, incorporating Chemical's holding company, and deciding to burn its shares, Chairman Shin announced the sale of financial businesses under the holding company. It is planning to reorganize its business based on distribution and petrochemicals, and accelerate the establishment of a holding company. 벳365
"We have decided to sell Lotte Card and Lotte Insurance to outside companies in order to keep the separation of financial institutions from which local shareholders cannot own financial affiliates." said Lotte Group on the 27th. Lotte plans to select Citibank as a weekly company to grow two companies and sell them to the buyer who will succeed the current executives and employees. Lotte also announced on the same day that it would merge the domestic and overseas logistics with Lotte Globalology to provide synergies such as integration of domestic and foreign bases and optimization of delivery networks.
Lotte Group changed into a holding company in October last year. Accordingly, the Fair Trade Act requires the holding company's stake in financial institutions to be liquidated by October next year in order to keep the separation of financial assets. Currently, financial companies such as Lotte Card (93.8 percent) and Lotte Capital (48.4 percent). Lotte Insurance is the largest shareholder (23.68 percent) of Hotel Lotte, which is separate from its holding company. However, Hotel Lotte is also planning to join a holding company in the future, and the company seems to have decided to sell the company along with the card.
As a matter of fact, analysts say that Lotte will sell its credit card and Capital shares to Hotel Lotte or Lotte Corporation. This is because Lotte Card and Insurance made operating profit of $11.3 million (11.9 billion KRW) and $101.2 billion (11.2 billion KRW) respectively last year. "Even if we buy shares of two companies from hotels or real estate, we concluded that it would be best to sell these two companies to outside the company since they should be incorporated as holding companies someday," a Lotte Group official said.
However, Lotte needs to go over another big mountain called Hotel Lotte Merchant before it can establish a complete holding company system. In particular, hotel Lotte's listing is considered as a card of the Group of Two, which can help calm disputes over the nationality of Lotte Group and strengthen Chairman Shin's management rights. Hotel Lotte owns shares in many Lotte affiliates in Korea, including Lotte Holdings Co. (9.99 percent).
Currently, Lotte Holdings in Japan is the largest shareholder with 19.1 percent of shares. Thus, the task remains to be taken to reduce Japan's stake in the process of listing Hotel Lotte and incorporating holding companies.
After Shin ended a management dispute with Vice Chairman Shin Dong-ju in 2016, Lotte Group formed a task force to be listed at Hotel Lotte and held a company briefing meeting overseas, but the number of prosecutors has suddenly stopped.
Chairman Shin is also reorganizing his main business into distribution and petrochemicals. Since his release from prison last month, he has made some quiet moves in Korea, but is active in opening up overseas markets. He will visit Vietnam and Indonesia early next month to check the business status of South Korea's policy. Lotte Group is planning to invest 1 trillion won in Vietnam to build a smart city that includes large shopping malls, and Indonesia is planning to build its largest chemical oil painting complex by investing 4 trillion won each. Lotte Group is also set to complete a three trillion won petrochemical plant this year.
After the Southeast Asian country finishes, it is expected that the South Korean government will visit Chinese businesses one after another. Although China's distribution business has virtually given up, the project is still going on. Lotte has completely withdrawn Lotte Mart from China this year, and is in the process of closing down its department store business, which is on the decline. Due to this reason, sales of Chinese businesses were halved last year, and normalizing other businesses is not easy. "China's failed business will be a painful point for Chairman Shin," a business representative said.