Lotte Global Logistics (CEO Kang Byung-goo) , which is currently pursuing a stock market listing, held a press conference in Yeouido, Seoul on the 21st and announced its post-listing business strategy and vision.
At the press conference, Lotte Global Logistics CEO Kang Byung-koo said, “Lotte Global Logistics is continuously growing through a stable business structure based on group synergy and domestic and international network infrastructure,” and “Even after listing, we will strengthen our differentiated customer service and specialized logistics capabilities to establish ourselves as the best growth stock in the capital market.”
Lotte Global Logistics, a global integrated logistics company of Lotte Group, conducts comprehensive logistics business including courier service, international express delivery, supply chain management (SCM), and forwarding, and provides various last-mile services utilizing mobile-based IT systems. It has a logistics infrastructure that covers all areas from warehouse management, maritime and air transport, port unloading, and local inland transport through domestic and international bases, and is increasing customer value through a data-based smart logistics system.
The company has secured a stable sales base centered on group affiliate (captive) logistics, and has also achieved numerous orders in non-captive areas based on logistics expertise accumulated through long-term business experience.
The funds from this competition will be used to expand the delivery infrastructure and enhance the smart logistics system. Lotte Global Logistics, which has continuously invested in the central region mega hub terminal, automation facilities, digital transformation (DT), and IT systems, plans to maximize the efficiency of its logistics network through this.
The company's total number of shares offered is 14,944,322, and the range of the desired offering price per share is 11,500 won to 13,500 won, and the expected offering amount is 201.7 billion won based on the upper end of the offering price band. From April 24 to 30, a demand forecast for institutional investors will be conducted to determine the offering price, and subscriptions will be held on May 12 and 13. The lead underwriters are Korea Investment & Securities and Samsung Securities, and the joint underwriter is KB Securities. The underwriters are Kiwoom Securities, Daishin Securities, BNK Investment & Securities, Shinhan Investment & Securities, and Hana Securities.
◆ Equipped with logistics capabilities covering all areas from last mile (delivery) to supply chain management and forwarding
The global logistics market that Lotte Global Logistics belongs to is growing rapidly along with industrial expansion. The domestic e-commerce market is expected to grow by an average of 7.3% per year until 2026, reaching a size of approximately KRW 27 trillion, and the global e-commerce market is expected to grow by an average of 6.8% per year until 2027, reaching approximately USD 8 trillion. Amid this growth, the company is expanding its market share through last-mile services and comprehensive logistics capabilities.
In the last mile sector, we provide small parcel transportation encompassing B2C and B2B, and fulfillment services that connect the entire logistics process from ordering to delivery. In addition, with the explosive growth of the online commerce market and the increase in demand for direct and reverse direct purchases, we have expanded the existing international express service that was only provided by aircraft to include service areas utilizing ships.
The TLS (Total Logistics Service) division encompasses domestic SCM and international forwarding, and plays a role in optimizing the entire supply chain of customers. In Korea, it supports improvement of logistics processes through logistics consulting using logistics center operation and IT solutions. In the international logistics division, it provides transportation services such as containers and special cargo in various areas ranging from sea and air forwarding, intermodal (composite transport), and port operation.
◆ Recorded performance and profit growth rate exceeding the industry average by expanding global sales on a stable profit base
Lotte Global Logistics has secured industry know-how and logistics infrastructure accumulated through long-term business experience, and based on this, it has shown steady growth along with continuous profitability improvement in recent years. In particular, it has recorded an operating profit growth rate of about 20% higher than the peer group average from 2021 to 2024, and the growth rate of pre-tax operating profit (EBITDA) and net profit also exceeds the industry average.
Based on the captive sales of affiliated companies, the company has secured a stable profit structure that can respond to the intensifying competition in the industry. Based on the cooperative relationship with affiliated companies that are carrying out a wide range of businesses, the company is attracting orders from leading customers in various fields such as distribution/fashion, food, daily necessities, automobiles, electronics/machinery, and manufacturing/chemicals through its expertise in the logistics field.
In addition, based on advanced logistics infrastructure such as 19 terminals nationwide and the largest central region mega hub terminal in Asia, it is possible to process up to 3.1 million boxes per day. In particular, since the introduction of the 'Hub & Spoke' method that decentralizes logistics from the center to branches after 2022, operational efficiency has been maximized, and the operating profit rate in 2024 nearly doubled compared to 2021.
Global business expansion is also picking up speed. Lotte Global Logistics is responding to changes by quickly entering markets with new growth potential during the supply chain reorganization process due to the US-China trade conflict, and currently operates 11 local corporations in 11 countries around the world. It is building an Eastern European logistics hub centered around the Hungarian corporation, and in 2024, it will establish a new corporation in Mexico, which is emerging as a new logistics hub in the North American region, to respond to the increasing demand for cross-border logistics.
◆ Aiming to preempt new markets such as secondary batteries and hydrogen… Promoting differentiated logistics services and pinpoint strategies
Lotte Global Logistics is targeting new growth industries centered on secondary batteries and hydrogen as its future strategy. In the secondary battery sector, it is securing logistics capabilities that cover the entire value chain from raw material transportation to finished product delivery, and waste battery recovery and recycling. In the hydrogen sector, it is planning a business model linked to ammonia maritime transportation based on collaboration with group companies.
In line with the growth of the online fresh food market, Lotte Group is also in charge of logistics operations for the 'Lotte eGrocery' business. It will participate as a logistics partner for the Ocado platform, an artificial intelligence (AI) solution introduced by Lotte Shopping, and provide demand forecasting, inventory management, and efficient delivery services based on data and AI.
Lotte Global Logistics aims to increase the number of companies providing ‘promised delivery’ services, which allow customers to receive their items at their desired time, from 28 in 2025 to 178 in 2027. The plan is to strengthen market competitiveness by diversifying its business through differentiated value-added services (VAS), such as ‘Luggage Less’, which reduces the burden on travelers.
The company has established the first TLS (integrated logistics service) organization in Korea to enhance domestic and international logistics services, and is creating integrated sales synergy between domestic logistics and import/export logistics. It is expanding new orders centered on existing shippers with high actual user satisfaction, and is laying the foundation for continuous growth by locking in major customers.
In addition, based on the infrastructure based on logistics processing capacity (CAPA), we are building specialized business areas targeting strategic shippers such as home shopping and T-commerce. We are also actively responding to the rapidly growing CBE (cross-border e-commerce) market, and in particular, we are targeting major markets including C-commerce (Chinese e-commerce).
Lotte Global Logistics operates a full range of logistics services, from warehousing to inland transportation and forwarding, based on 172 domestic networks and 11 overseas bases, while also pursuing a visible global expansion strategy. It is strengthening its competitiveness in the global logistics market through pinpoint strategies tailored to the characteristics of each region and country.
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