LOTTE is actively introducing artificial intelligence (AI) into its business while expanding its global reach to prepare for the future. The company is establishing differentiated business strategies in the global market to enhance its competitiveness and is pursuing sustainable growth based on new businesses such as the metaverse and biotechnology.
◇LOTTE declares AI ethics charter and carries out tasks across all group sectors
According to the company on the 30th, LOTTE held a declaration ceremony for its ethics charter in May, announcing an AI ethics charter that all employees must adhere to throughout the entire process from development to utilization. The LOTTE AI ethics charter is designed to prevent social issues that may arise related to AI and is centered around six core values: ▲Human respect ▲Safety ▲Transparency ▲Fairness ▲Accountability ▲Solidarity. It is also based on the AI ethics guidelines from UNESCO and the Ministry of Science and ICT and states that "LOTTE complies with correct behavior and ethical values throughout the whole process of utilizing AI, contributing to a prosperous life for humanity."
LOTTE is executing AI projects across all sectors of the group to strengthen its core competitiveness. The main areas of development are purchasing, production, sales, marketing, and customer management.
LOTTE Chemical developed a synthetic resin color matching simulation system that identifies color combinations desired by customers, improving daily productivity by 50%. LOTTE Fine Chemical established a raw material market analysis and contract price prediction system, enhancing efficiency in cost management and raw material supply.
The scope of the group's AI platform utilization is gradually expanding. Aimember has recorded an average of over 150,000 uses per month within the group, based on the advantage of securely using external generative AI. Thanks to this usage performance, LOTTE Innovate launched external services and signed service supply contracts with six IT solution companies in April.
The accumulated usage data since its launch in October 2023 and the effectiveness of features specialized for practical work, such as automatic generation of meeting minutes and reports, have contributed to the contract's success. AIMS, which handles marketing planning work, and the data integration platform SMARTLION are also expanding their affiliate applications.
◇LOTTE seeks opportunities through active overseas expansion
LOTTE is exploring the potential for sustainable growth and entering the emerging blue ocean market of Africa. Since October of last year, the company has been conducting the 'Sustainable Cocoa Bean Project' in Ghana.
The 'Sustainable Cocoa Bean Project' aims to improve the cultivation environment of farms for the sustainable procurement of cocoa, which is a raw material for chocolate. Ghana, the world's second-largest cocoa-producing country, is struggling with poor yields due to extreme heat and diseases. To secure sustainable business capabilities, LOTTE delivered 130,000 cocoa seedlings to the Ghana Cocoa Board, the government agency overseeing cocoa production, processing, and marketing.
LOTTE Wellfood completed a new factory in Pune, India, in February. This is the first time the company has expanded its production facilities since acquiring HabuMore in 2017, and it currently operates nine lines, with plans to continuously expand the production line by introducing automation equipment.
The integrated corporation of LOTTE India and HabuMore, set to launch in the first half of the year, is expected to enhance the product portfolio and create efficiencies by integrating logistics bases. Additionally, the Haryana plant in India has been selected as the first overseas production base for the Pepero brand and will commence production in the second half of this year. LOTTE plans to stably establish Pepero products in India, which has a confectionery market worth about 17 trillion won.
LOTTE Global Logistics has begun constructing a large-scale cold chain logistics center to lead the logistics market in Vietnam. The company held a groundbreaking ceremony for the 'Vietnam Dong Nai Cold Chain Center' in Nhơn Trạch, Dong Nai Province, last March.
The Dong Nai Cold Chain Center is expected to become a major distribution and logistics hub in southern Vietnam by efficiently providing various logistics services based on geographical advantages in inland and overseas transport and LOTTE Global Logistics' unique operational expertise. The center will offer one-stop total logistics services, including export and import, storage, and delivery services, and will have the capacity to handle a wide range of products, from fresh food to high-value goods.
◇Introducing new growth engines at the Seoul Mobility Show and CES 2025
Additionally, LOTTE participated in the '2025 Seoul Mobility Show' in April. LOTTE Chemical, LOTTE Energy Materials, LOTTE Innovate, and LOTTE Global Logistics were among the participants, showcasing a comprehensive overview of the group's mobility business, including eco-friendly energy and autonomous driving. LOTTE set up its exhibition to provide an overview of its eco-friendly energy-based future mobility value chain under the theme 'L.Mobility Panorama.'
The LOTTE exhibition featured three zones: a mobility technology zone showcasing battery core materials and physical mobility interior and exterior materials along with EVSIS electric vehicle chargers, an autonomous driving zone where visitors could experience delivery robots and future mobility systems, and a hydrogen value chain zone presenting the entire process from production to charging and utilization of hydrogen through various graphics, models, and videos.
LOTTE Innovate is conducting metaverse business through its subsidiary Caliverse. In January, it participated in CES 2025, highlighting the AI technology applied to Caliverse and presenting the future vision of the metaverse, which will be accelerated by AI. The Caliverse platform utilized AI technology in every detail, from buildings to trees and blades of grass, to create realistic graphics depicting vast spaces.
LOTTE Innovate has organized its CES 2025 booth into six zones, allowing visitors to experience Caliverse from various perspectives. For example, visitors could vividly feel K-POP and EDM performances through VR devices and 3D glasses, as well as experience content like avatar customization. Additionally, a demonstration zone was introduced where visitors could feel the three-dimensional effects of K-POP and EDM performances simply by attaching a separate 3D protective film to their mobile phones or tablets, capturing the attention of many.
Furthermore, LOTTE Innovate's subsidiary EVSIS signed a memorandum of understanding with SOLUM, a company recognized for its technological capabilities in the power module sector, a key component of electric vehicle chargers, to develop its overseas electric vehicle charging market. EVSIS specializes in electric vehicle charging platforms, holding a complete lineup of chargers from slow to ultra-fast charging, with capabilities spanning the entire charging industry, including design, manufacture, operation, and maintenance. Through this agreement, EVSIS plans to incorporate SOLUM's power modules into its chargers to pursue certification and application in the U.S. market.
LOTTE Biologics held a groundbreaking ceremony for the construction of its Bio Campus Plant 1 in Songdo International City, Incheon, in July of last year. By 2030, LOTTE Biologics plans to establish three mega plants in Songdo, Incheon, with a total production capacity of 360,000 liters of antibody drugs. Each plant will be capable of producing 120,000 liters of antibody drugs and will also include small-scale culture vessels for the production of clinical materials and facilities for finished pharmaceuticals. LOTTE Biologics aims to build global-level competitiveness in biopharmaceutical manufacturing through an investment of about 4.6 trillion won.