Lotte Group has decided to withdraw from the healthcare business. This comes after more than three years since it established a corporation with an investment of 70 billion won from Lotte Holdings in April 2022.
Lotte Healthcare announced on the 24th that it will hold an extraordinary general meeting to resolve the liquidation of the corporation. The plan is to complete the liquidation process by the first half of next year.
The reason Lotte is stepping away from the healthcare business is that it assesses the future growth potential as small. A Lotte representative noted, "After closely reviewing the healthcare market environment and business direction, we concluded that it would be difficult for the personalized digital healthcare business to sustain growth," adding that the group plans to promote projects at a group level in areas such as senior towns and food tech in the future.
A representative project is Hotel Lotte's senior residence brand "VL (Vitality & Liberty)." VL is pursuing an urban senior residence business based on 50 years of accumulated Lotte Hotel service. Hotel Lotte is scheduled to begin operations for "VL Rauer (Busan Gijang)" in January next year and for "VL Le West (Seoul Magok)" in October.