[Report] Lotte ON Removes Non-Compliant Products... Recall Product Detection System 'Immediately Blocks'

Precision Analysis Equipment Costs 100 Million to 300 Million KRW Each
Product Information Registered to Prevent Redistribution
Utilizing Google Optical Character Recognition Technology
24-Hour Comprehensive Product Monitoring Conducted

Researchers are conducting ingredient investigations on Lotte On products at the Safety Center of Lotte Central Research Institute in Gangseo-gu, Seoul.

[Asia Economy Reporter Lim Chun-han] “Most other companies outsource to external laboratories, but Lotte conducts preliminary inspections through the Central Research Institute Safety Center and responds swiftly to issues.”

On the afternoon of the 23rd, I visited the Lotte Central Research Institute Safety Center located in Magok-dong, Gangseo-gu, Seoul. This place ensures that consumers can safely use products with confidence. Due to the institute’s security policy, I was only allowed inside after placing stickers prohibiting photography on my smartphone, laptop, and camera. Following the guide, I entered the precision analysis room, where numerous devices were operating busily. I was amazed to learn that each piece of equipment costs between 100 million to 300 million KRW.

In one sector, boxes containing inspection targets such as children’s products, fashion accessories, household goods, and chemical products were piled up. Before analyzing these products with precision machines, a pre-treatment process is conducted using organic solvents to extract targeted harmful substances. In the GC analysis room, phthalate plasticizers and carcinogenic dyes?major recall items for children’s products?are analyzed, while the LC analysis room inspects preservatives that may be contained in chemical products. The ICP analysis room detects harmful heavy metals such as lead, cadmium, and mercury.

Recently, after randomly purchasing imported kitchen detergents for analysis, they discovered multiple non-compliant products containing ingredients that do not meet Korean standards to enhance cleaning power, and immediately halted their sales. Kwon Jeong-min, senior researcher of the Household Goods Safety Team, explained, “Precision analysis is mainly conducted on high-risk overseas direct purchase products such as children’s items, cosmetics, air fresheners, and cleaning products when safety issues arise. When a product is judged non-compliant, its information is registered in the recall product database to prevent redistribution.”

Lotte Central Research Institute exterior view.

Lotte ON operates a Recall Product Identification System (RPA). This system automatically detects and blocks recall products sold on Lotte ON by utilizing public data provided by government agencies and Google’s Optical Character Recognition technology. Traditionally, blocking was done by searching product names based on domestic and international recall product information, but many cases were missed. To address this issue, a system was built that assigns specific keywords and extracts text from product advertisement images for identification. In fact, the computer at the Safety Center was conducting 24-hour searches on products registered on Lotte ON by inputting keyword values.

According to Lotte ON, currently about 75,000 registered sellers list and sell 69 million products. Since adopting the open market, the number of products handled has increased more than tenfold compared to before, and greater efforts are being made to verify the safety and reliability of sold products. Especially to respond more quickly when product safety issues arise, a separate communication channel has been created for real-time response. This channel includes Lotte ON’s TNS (Trust & Safety) personnel, product team leaders, and customer service representatives, enabling close decision-making.

A Lotte ON official said, “There are so many online products that it’s a battle against numbers. We are continuously considering cooperation systems with the Lotte Central Research Institute to find the most efficient management method. In the case of the open market, sellers sometimes register problematic products without knowing they are problematic. We focus on promptly verifying and blocking these.”

Meanwhile, the Lotte Central Research Institute is an eight-story building above ground with three basement levels. Its total floor area is 82,929 square meters, approximately 25,000 pyeong. The institute currently employs about 400 personnel.