Lotte Corporation is a holding company that owns stakes in affiliates such as Lotte Shopping (about 40%), Lotte Wellfood (about 47%), Lotte Chilsung Beverage (about 45%) and Lotte Chemical, earning money through dividends, trademark royalties and management-advisory fees; much of its roughly ₩15.5 trillion in consolidated revenue is the combined revenue of the affiliates it consolidates, so 'which affiliates it holds, and how much of each' is what drives corporate value. In 2026, as part of a value-up program, it stated a policy of expanding shareholder returns and reviewing interim dividends and treasury-share retirement, and it decided on a ₩1,250-per-share dividend; in Q1, Lotte Chemical's swing back into the black brought the group's earnings into a recovery phase. The point worth watching is that a large NAV discount - market cap well below the value of its listed holdings - together with a dividend yield in the 5% range and an ongoing value-up program are strengths, while Lotte Chemical, a core pillar of the holding's value, is sensitive to the chemicals cycle so the pace of recovery depends on that cycle, the standalone values of Lotte Shopping and Lotte Wellfood are not low so the NAV discount cannot narrow indefinitely, and holding-company earnings swing with equity-method accounting.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- The most recent full-year net result was a loss.
- Revenue fell 1.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.0% higher than a year earlier.
- ROE is -10.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.5%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2019-12-31
Largest shareholder Shin Dong-bin 11.7% (individual)
Controlling bloc incl. related parties 17.3%
With the controlling bloc holding 17%, control is maintained but the free float is relatively large.
Net asset value (NAV) assessment Fairly valued39% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| Lotte Innovate | 66.1% |
| Lotte Wellfood | 48.13% |
| Lotte Chilsung Beverage | 45% |
| Lotte Shopping | 40% |
| Lotte Chemical | 25.31% |
| Lotte Chilsung Beverage | 21.14% |
🔎 In-depth analysis
- Lotte Corporation is not a company that makes and sells goods directly; it is a holding company that owns stakes in the listed and unlisted affiliates of the Lotte Group and earns money through their dividends, trademark (brand) royalties and management-advisory fees.
- Its core holdings are Lotte Shopping in retail (about 40%), Lotte Wellfood (about 47%) and Lotte Chilsung Beverage (about 45%) in food, and Lotte Chemical in chemicals.
- Much of its consolidated revenue (about ₩15.5 trillion) is the combined revenue of consolidated affiliates, so corporate value is driven less by the holding company's own results than by 'which affiliates it holds and how much of each.' Lotte Chemical and Lotte Shopping had long been the big pillars of dividend income, but as chemical dividends shrank during the chemicals downturn, the relative contribution of the food and retail affiliates grew.
- The latest close is ₩22,950 and market capitalization is ₩2.3 trillion.
- The price sits below its 20-day moving average (₩24,688) and below its 60-day line (₩26,742).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 39.0, a neutral level.
- The one-month change is -10.7%, the three-month change is -14.8%, and the price sits -40.5% from its 52-week high.
- Relative strength versus the KOSPI is 14 (on a 1-99 scale that weights recent returns against the index over the past year more heavily toward the recent period; higher means stronger than the market), placing it in roughly the top 86% of all stocks by strength.
- Over the past three months it lagged the index by 34.7%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- As a holding company, standard metrics are hard to apply as-is.
- Net profit and loss for 2025 was a loss of -₩647.6 billion, largely because Lotte Chemical's chemical losses flowed through via equity-method accounting (which reflects an affiliate's profit or loss in proportion to the stake held).
- The P/E ratio (how many times a year's profit the share price represents) is therefore not calculable, so this company is hard to judge by P/E.
- The P/B (how many times book equity the share price represents) is 0.38x, which looks very low, but book equity carries affiliate stakes at low historical cost and thus underreflects their actual holding value.
- The debt ratio (borrowings relative to equity) of 224.6% is also inflated somewhat by financial-nature affiliates in the mix and should not be read against a general manufacturing yardstick.
- The dividend yield is 5.3% (₩1,250 per share), on the high side, and this dividend is paid out of dividends received from affiliates.
- Revenue was ₩15.5 trillion in 2025, a slight contraction of -1.4% year on year, and operating profit fell 29.7% to ₩239.4 billion, a third straight year of declining profit.
- Net profit and loss went from a slight loss in 2023 to large losses in 2024 and 2025, the cumulative result of chemical down-cycle losses flowing through via equity-method accounting.
- The inflection point, however, is Q1 2026.
- Consolidated revenue was ₩3.62 trillion (+1.0%) and operating profit ₩46.1 billion, about 2.6 times the year-earlier figure, while net profit and loss swung back into the black (+₩14.5 billion).
- The key point is that Lotte Chemical returned to an operating profit for the first time in ten quarters, and food and retail affiliates such as Lotte Chilsung, Lotte Wellfood and Korea Seven also improved.
- Last year's large loss was strongly one-off in nature, tied to the chemical trough, so as the chemicals cycle passes its bottom, equity-method profit normalizes and the holding company's net profit and loss follows a recovery track.
- Given that holding-company earnings are driven by equity-method accounting on affiliate stakes and swing sharply from year to year, and with no official company outlook, we do not pin down a precise net-profit figure for this year.
- Through 2026, disclosures related to affiliate management and shareholder returns have continued.
- As part of a value-up program, the company stated a policy of expanding shareholder returns and reviewing interim dividends and treasury-share retirement, and it decided on a regular cash and in-kind dividend (₩1,250 per share).
- In May it held an investor presentation (IR) sharing its Q1 report, group results and portfolio strategy, and disclosed management matters at an affiliate (the Lotte Chemical group) - including a capital reduction, a production halt, loans and debt guarantees - as material affiliate management matters.
- Restructuring-type measures at the chemical affiliate are a short-term burden but can be read as a mid-term improvement in fundamentals during a cyclical recovery.
- The observation points are clear.
- The strengths are that (1) the company sits at an NAV discount, with market cap well below the value of its listed holdings, (2) a high dividend yield in the 5% range and a value-up program (expanded shareholder returns, treasury-share retirement under review) are in progress, and (3) Lotte Chemical's return to the black in Q1 2026 brought group earnings into a recovery phase.
- The cautions are that (1) Lotte Chemical, a core pillar of the holding's value, is sensitive to the chemicals cycle so the pace of recovery depends on that cycle, (2) the standalone values of the largest affiliates, Lotte Shopping and Lotte Wellfood, are not low, so the NAV discount cannot narrow indefinitely, and (3) holding-company earnings swing quarter to quarter and year to year with equity-method accounting.
- In short, if the chemicals cycle recovers and retail and food stay firm, there is ample room for the NAV discount to narrow, while if chemicals wobble again the stability of the dividend and the quality of the affiliates serve as the line of defense.
🔎 Valuation vs peers Undervalued
Compared against Korea's leading holding companies - contrasted with LG, CJ and Hanwha, which share the common feature that as operating holding companies the value of their listed affiliate stakes is central to corporate value.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LG Corp | 21.19x | 0.54x | 2.57% |
| CJ Corporation | 27.91x | 0.77x | 2.75% |
| Hanwha | 17.34x | 0.55x | 3.15% |
As a holding company, Lotte Corporation is better viewed by the net asset value (NAV) of its holdings than by P/E or P/B. Market cap sits on the deep side of the usual holding-company discount range (30-50%) relative to the value of its listed holdings, and even against peer holdings (LG, CJ, Hanwha) the 0.39x P/B is on the low side. This discount does not by itself mean undervaluation, however, since among the core affiliates Lotte Chemical is sensitive to the chemicals cycle while Lotte Shopping and Lotte Wellfood have standalone values that are not low, which partly justifies the discount. Even so, because (a) at the current price the NAV discount is on the deep side of the usual range, (b) chemicals returned to the black in Q1 and earnings have moved onto a recovery track, and (c) a dividend yield in the 5% range and treasury-share retirement under review support the downside, we view the current position as undervalued. The fact that the P/E is not calculable due to last year's trailing loss is merely a characteristic of an earnings-inflection stock; the basis for the valuation judgment is NAV.
Price history Close · MA20 · MA60
The latest close is ₩22,950 and the market capitalization is ₩2.3 trillion. The price sits below its 20-day moving average (₩24,688) and below its 60-day moving average (₩26,742). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 39.0, a neutral level. The one-month change is -10.7%, the three-month change is -14.8%, and the position relative to the 52-week high is -40.5%. Relative strength versus the KOSPI is 14 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 14% of all stocks. Over the past three months it lagged the index by 34.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -34.69% / 6M -46.05% / 12M -66.24%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.38x is below the sector median (0.49x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -10.7%, below the sector average (5.0%). The operating margin is 1.5%. The debt ratio is 224.6%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $10.0B | $10.4B | $10.3B | -1.38% ↓ slower |
| Operating profit | $327.2M | $225.7M | $158.7M | -29.67% ↑ faster |
| Net profit | -$10.2M | -$675.2M | -$429.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.6B | $9.4B | $10.0B | $10.4B | $10.3B |
| Operating profit | $143.4M | $324.6M | $327.2M | $225.7M | $158.7M |
| Net profit | $204.5M | $113.2M | -$10.2M | -$675.2M | -$429.2M |
| Revenue CAGR | 4-yr avg 11.86% | ||||
Revenue fell 1.4% year over year (2023 ₩15.2 trillion → 2024 ₩15.8 trillion → 2025 ₩15.5 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 29.7% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.9%. The two-year revenue CAGR is 1.2%. In the most recent quarter (Q1 2026), revenue was 1.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 5.5%, is on the high side.
Points to watch
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 1.4% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-06-11DividendDecision on a cash and in-kind dividend and confirmation of the dividend record date (register closing). ₩1,250 per share, a yield of about 5.3% at the current price.A high dividend yield supports the price on the downside. Because the funding comes from affiliate dividends, whether affiliate earnings keep recovering is the key to its continuation. Source
- 2026-05-15EarningsQ1 2026 report disclosed. Consolidated revenue ₩3.62 trillion (+1.0%), operating profit ₩46.1 billion (about 2.6 times the year-earlier figure), net profit and loss swinging into the black (about +₩14.5 billion).An inflection point where net profit and loss turned positive as chemical equity-method losses shrank, supporting the view that last year's large loss was one-off. Source
- 2026-05-13IRNotice of an investor presentation (IR). Shared the group's Q1 results and its portfolio-upgrade strategy.A channel for the company to explain directly its expanded shareholder returns (value-up) and the direction of affiliate reorganization, bearing on mid-term confidence in capital allocation. Source
- 2026-05-08FilingReport on changes in largest-shareholder holdings and large-holding status. A regular filing on governance and shareholding matters.A reference indicator for confirming governance stability and shareholding changes; on its own the earnings impact is limited. Source
- 2026-04-28UpdateDisclosed a capital-reduction decision and other material management matters at an affiliate (the chemical group) as material affiliate management matters; in May a production-halt disclosure was also corrected.A restructuring-type measure during the chemical downturn and a short-term source of uncertainty; mid-term, it is an improvement in fundamentals. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02Disclosure
- 2026-06-02Disclosure
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-26Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-08OwnershipLargest-shareholder ownership change report
- 2026-05-08OwnershipOwnership-change filing
- 2026-04-28Material-fact report (amended)
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.