Korea’s Lotte Group secures $3.8 bn from 4 major banks for next 5 years

[Courtesy of Lotte Group]

South Korea’s Lotte Group has signed a financial support agreement worth 5 trillion won ($3.8 billion) with the country’s four major lenders KB Kookmin Bank, Shinhan Bank, Woori Bank, and Hana Bank, the conglomerate announced Friday.

The agreement comes as Lotte Group seeks to secure investment funds for the next five years that will be spent on key future projects related to secondary battery materials, hydrogen and ammonia, recycling & carbon reduction, and biotechnology.

Six Lotte companies will receive the funds - Lotte Corp., Lotte Chemical Corp., Lotte Fine Chemical Co., Lotte Aluminum Co., Lotte Energy Materials Corp., and Lotte Biologics Co.

Lotte Corp. plans to accelerate key future businesses in line with its efforts to aggressively nurture four business areas it has announced as new growth engines – health and wellness, mobility, sustainability, and new life platform.

The company expects to boost market confidence with the financing it has secured.

Lotte Group’s chemical arms plan to produce 1.2 million tons of clean hydrogen by 2030 and expand eco-friendly recycled materials business to more than 1 million tons.

Lotte Biologics will invest 3.7 trillion won by 2030 to build a mega-factory in Songdo, Incheon, which will be capable of producing 360,000 liters of antibiotic medicine.

The four major banks said that they will carry out financial support programs to spur new growth engines and that they will allow corporations and financial institutions to share their blueprints on future projects and create synergy.