Lotte Group has decided to invest 50 trillion won (US$44 billion) over the next five years and create 70,000 jobs.
The group’s large-scale investment and employment plan was a response to a request from group chairman Shin Dong-bin for measures to contribute to the nation's economic development and sustainable growth. Shin came back to management this month after eight months in prison.
"We have decided to invest 50 trillion won in all business sectors at home and abroad for the next five years," Lotte Group announced on Oct. 23. “We will also create 70,000 new jobs to revitalize the economy.”
Lotte plans to invest about 12 trillion won next year, the first year of its plan.
The figure is the largest ever since it invested 11.2 trillion won in 2016 to acquire a domestic petrochemical company.
In the distribution sector, the group will focus investment on enhancing online capabilities, while in the chemical sector, it will seek to expand facilities in Korea, Indonesia and the United States.
In particular, it plans to focus on strengthening its online business capabilities to the highest level among domestic companies. The group will strive to provide new experiences to its customers by actively utilizing digital technologies such as artificial intelligence and big data.
It is planning to increase customer convenience by making large investments in online and off-line distribution infrastructure, including logistics facilities and systems.
In addition, the group has decided to continue the shopping mall project, which has large job creation effects.
In the food sector, it is going to expand investments in AI for trend analysis and development of new products, while at the same time improving facilities at home and abroad to enhance profitability.
In the chemical sector, Lotte will aim to achieve economies of scale and raise its cost competitiveness with continuous facility investment in the nation`s production bases such as Yeosu, Ulsan and Daesan.
It is planning to carry out large facility investments abroad to increase its global competitiveness by diversifying raw material supply sources.
In the tourism and service sector, the group plans to focus on enhancing its brand value by continuing to expand domestic and overseas businesses. It also plans to continue its push for acquisition of overseas companies.
Along with the investment plan, Lotte also announced plans to hire 70,000 people over the next five years. It plans to hire more than 13,000 workers next year, up about 10 percent from this year, and gradually increase the number of new employees each year.
The group expects a large-scale recruitment to take place in the e-commerce field.
Regarding the plan, a Lotte official said, "It reflects our efforts to quickly normalize management activities that have been slowing lately, secure competitiveness to prepare for future growth, and contribute to vitalizing the nation's economy.”
In October 2016, after the prosecution’s investigation into Lotte's management scandal ended, chairman Shin announced a plan to hire 70,000 new employees and invest a total of 40 trillion won over five years from 2017.