Lotte Shopping announced on the 4th that it will establish a strategic partnership with the Export Development Canada (EDC) to support market entry for both countries' corporations based on financial cooperation and network sharing.
The EDC is a public export credit agency established in 1944, fully funded by the Canadian federal government. It provides export insurance, guarantees, investments, and financial support to promote exports of Canadian corporations.
Through this agreement, Lotte Shopping will receive up to $500 million (approximately 700 billion won) in financial cooperation from the EDC over the next three years. It will secure funding by linking EDC's direct loans or global financial institution loans. Additionally, the EDC will support Lotte Shopping's investment activities in Canada through trade cooperation network connections with the Canadian government.
Lotte Shopping will use its domestic online and offline distribution networks and affiliate networks to assist Canadian corporations in entering the Korean market. It plans to create a foothold for enhancing exchanges between corporations from both countries.
Lotte Mart's private brand (PB) products will also enter the North American market. Lotte Mart is currently exporting PB products to more than 10 countries.
Lotte Shopping considers Canada as a strategic base for developing export channels in the North American market. The Canadian food market has low tariff barriers, quick consumer responses, and a high preference for small and convenient packaged products, making it advantageous for exporting PB products. According to the Korea Trade-Investment Promotion Agency (KOTRA) and Statistics Canada, imports of Korean food products into Canada are expected to grow at an average annual rate of 6.12% until 2028.
Kim Sang-hyun, executive vice president overseeing Lotte's distribution sector, noted, "Lotte Shopping will expand its influence on the global stage based on EDC's financial cooperation and networking, and broadly promote the excellence of K-food in the North American market." He also expressed hope that the agreement will serve as an opportunity for corporations from Korea and Canada to achieve a "win-win" situation together.