[Featured Stock] Lotte Group Shares Hit New Lows Amid 'Liquidity Crisis Rumors'...Company Denies Claims as "Baseless"

Liquidity Crisis Rumors Push Holding, Chemical, and Shopping Sectors to New Lows
Rumors of Moratorium Declaration Early Next Month Circulate
Lotte Group States "Liquidity-Related Rumors Are Groundless"

Shares of Lotte Group all hit new lows. It appears they plummeted following rumors of a liquidity crisis within the group.

As of 2:02 PM on the 18th, Lotte Holdings is trading at 20,450 KRW, down 7.05% (1,550 KRW) from the previous trading day. This marks a 52-week low. Other Lotte Group affiliates such as Lotte Chemical (-7.77%) and Lotte Shopping (-6.28%) also hit new 52-week lows. Considering the overall rebound trend in the KOSPI, only Lotte Group stocks are moving in the opposite direction.

Recently, rumors have been circulating in the securities industry that Lotte Group, facing a liquidity crisis, will declare a debt moratorium early next month. Although Lotte Group’s borrowings amount to 39 trillion KRW, the group’s total expected net profit for this year is only 1 trillion KRW, triggering a liquidity crisis across the entire group.

Meanwhile, Lotte Holdings, Lotte Chemical, and Lotte Shopping each stated in disclosures today that "the rumors regarding Lotte Group’s liquidity crisis currently being circulated are groundless."