SOUTH KOREA. The prospects of an early IPO for Hotel Lotte, parent company of the country’s largest (and the world’s number two) travel retailer Lotte Duty Free, were boosted sharply yesterday after Lotte Group Chairman Shin Dong-bin was appointed as Chairman of Lotte Holdings of Japan.
Shin’s dual command over Lotte’s interests in South Korea and Japan (where he was already CEO) will likely lead to an aggressive international growth programme for the regional powerhouse.
With Lotte Duty Free the cash cow of the business, Chairman Shin will be eyeing international expansion opportunities, particularly given the travel retailer’s heavy exposure to the currently troubled Korean market. At a time of stockmarket carnage generally and great stress in the travel retail community specifically, Hotel Lotte armed with a war chest could see it as the perfect time to deliver its long-stated ambition to be global number one in the sector.
Lotte Group said in a statement: “As Lotte Chairman Shin Dong-bin becomes the CEO of Lotte Holdings, he expects that Lotte will be more empowered to work on the listing of Hotel Lotte.”
“He is also expected to actively seek ways to enhance synergy between the two countries by strengthening exchange and cooperation between Korea and Japan and jointly pursuing global strategies.”
The Chairman’s post has been vacant since the late Chairman Shin Gyuk-ho (who died this January) was appointed as the Honorary Chairman in 2017.
