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Biz News Korea(Eng)

Hotel Lotte IPO plan put on hold due to THAAD-hit duty-free business

Collected: 2017.04.04

Distributed: 2017.04.06

Source: Go Direct

Hwang Gak-gyu

South Korea’s Lotte Group cannot proceed with its plan of listing Hotel Lotte Co. as a part of its pledge to enhance corporate transparency following prospection probe on irregularities of the family-run business in near future because the hotel’s primary revenue source, duty-free shop, has been hurt after the Chinese stopped coming to Korea over the diplomatic spat of the installment of a U.S. antimissile system.

“The listing would be possible once the duty-free business becomes normalized,” said Hwang Gak-gyu, Lotte Group president in charge of policy coordination, on Tuesday during an event marking the fifth largest conglomerate’s 50th year in business in Korea and opening of Lotte World Tower that would be the country’s tallest at 555 meters high.

“It (IPO) may take longer than expected, but we still maintain the position that we hope to list Hotel Lotte as soon as possible,” he said.

The group will continue to invest in China regardless of the country’s bombardment of retaliatory actions after it yielded its land to host the Terminal High Altitude Area Defense (THAAD) battery. Beijing strongly opposes to the THAAD installment in Korea on concerns that it could come under its radar surveillance. It has barred group travels to South Korea, broadcasting of Korean TV programs, and encouraged boycott on Korean brands after Seoul and Washington proceeded with the plan regardless of its protest. Lotte became the main target because its golf course was chosen as the ideal place to install the missile system.

“We do not know exactly what the authorities are up to. For now, we would have to wait and see,” he said.

Most of Lotte Mart stores have been suspended for a month or shuttered due to violent rallies.

By Sohn Il-seon

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