Lotte Group Denies Liquidity Crisis Rumors as "Completely Unfounded"

Borrowings of 39 Trillion Won and Over 50% Layoff Rumors at Distributors
"Malicious Lies, Distortion of Facts"
Group Affiliates Launch Simultaneous Response

Lotte recently issued an official statement denying rumors of a group liquidity crisis that have been circulating online and elsewhere.

Lotte Group companies, including Lotte Holdings, announced on the 18th that "the rumors regarding a liquidity crisis in the Lotte Group currently being discussed are unfounded."

Previously, rumors circulated in the securities industry and online that Lotte would declare a moratorium (default) on its debts in early next month due to liquidity problems and would cut more than 50% of its total workforce, mainly in its distribution affiliates. Specifically, it was claimed that the group's borrowings currently amount to around 39 trillion won, while the expected net profit for this year is only 1 trillion won, indicating a liquidity crisis.

In particular, it was reported that the borrowings of not only Lotte Shopping but also Lotte Holdings, Lotte Holdings, Lotte Chemical, and Hotel Lotte total about 30 trillion won, suggesting a liquidity crisis across the entire group. The report also included claims that Lotte On, Lotte's e-commerce affiliate, is running losses in the trillions of won, and that more than 50% of the total employees, mainly in distribution affiliates, are expected to be laid off. This spread under the headline "Lotte faces disintegration crisis as the second Daewoo Group," attracting market attention.

In response, not only Lotte Holdings but also Lotte Chemical and Lotte Shopping quickly moved to dispel the rumors, stating that the information is groundless. A Lotte spokesperson also denied the rumors, saying, "These rumors are malicious falsehoods and distort the facts."

Meanwhile, as of 2:30 p.m. on the same day, Lotte Holdings' stock price was trading at 20,350 won, down 7.50% (1,650 won) from the previous trading day, marking a 52-week low. Other group affiliates such as Lotte Chemical (-9.13%) and Lotte Shopping (-7.57%) also recorded 52-week lows.