Lotte to launch Korea-Japan food joint venture in Singapore to spearhead Asia expansion

Shin Yu-yeol, head of Lotte Holdings' future growth division

Lotte Group will launch a joint venture in Singapore early next month to integrate the Asian operations of its Korean and Japanese food businesses, marking a major step in Chairman Shin Dong-bin's "One Lotte" strategy aimed at strengthening the group's global competitiveness.

The new company, jointly established by Lotte Wellfood of Korea and Japan's Lotte Confectionery, has already secured board approval from both companies, as well as clearance from the relevant competition authorities. Shin Yu-yeol, head of Lotte Holdings' future growth division, will serve as chairman of the joint venture's board and oversee the group's overseas food business strategy and cross-border synergies.

The joint venture represents one of the most tangible outcomes of Shin's long-standing effort to deepen cooperation between the group's Korean and Japanese affiliates. Shin has regularly chaired "One Lotte Food Strategy Meetings," urging closer collaboration to build a stronger global presence as growth in the domestic markets of both countries slows.

Under the strategy, the two companies have expanded cooperation in areas including raw material procurement, joint marketing and cross-border product sales.

The partnership has already produced measurable results. Lotte Wellfood's overseas sales rose 14.4 percent year-on-year to 1.2 trillion won ($774 million) last year, while Japan's Lotte Confectionery generated about 900 billion won in overseas revenue, led by operations in Vietnam and Indonesia.

Lotte expects the Singapore joint venture to elevate cooperation between the two food businesses by consolidating the management and decision-making functions that had previously been handled separately. The new entity will oversee the companies' Asian operations while integrating production, sales and logistics networks to improve efficiency and strengthen their competitiveness in global markets.

The company will focus on developing global mega brands, streamlining operations across the entire value chain — from raw material procurement to logistics and marketing — jointly developing new products through shared research and development, and expanding into high-growth overseas markets.

"The establishment of the joint venture brings together the capabilities of the Korean and Japanese Lotte food businesses in Asia," a Lotte official said. "By combining the strengths of both companies, we aim to foster global mega brands, expand into new markets and further enhance our global competitiveness."