Lotte expands financial, export support for Korean SMEs
The South Korean conglomerate disbursed 949.5 billion won ($698 million) in early payments to 12,000 suppliers and maintains a 1 trillion won fund for working capital.
Early Payments and Working Capital
Lotte is increasing its financial and overseas marketing assistance for partner companies, aiming to alleviate cash-flow pressures and connect smaller businesses with international buyers. Ahead of the recent Chuseok holiday, 27 Lotte affiliates paid 949.5 billion won ($698 million) to approximately 12,000 suppliers. These payments were made an average of eight days early.
The group has consistently provided early payments before major holidays since 2013. Additionally, Lotte manages a 1 trillion won fund to help its partners secure essential working capital, supporting their operational needs.
Global Market Access Initiatives
To facilitate the entry of small and midsize businesses into international markets, Lotte has organised its Brand Expo events since 2016. Across 22 editions, these expos have engaged more than 1,600 companies. They have collectively generated export consultations valued at over $1.2 billion, demonstrating a significant impact on partner companies' global reach.
Lotte states it was the first major Korean company to implement a shared-payment system across all its affiliates, streamlining financial processes for its extensive network of suppliers.
Madrid Expo Drives European Deals
In May this year, Lotte co-hosted the 2026 Lotte-Korea Brand Expo in Madrid, Spain. This event was a collaboration with the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea Foundation for Cooperation of Large and Small Enterprises, Rural Affairs and Fisheries.
Fifty participating companies conducted 522 consultations with approximately 70 buyers from seven European countries. These discussions led to potential deals worth $34 million. The expo also featured a K-beauty pop-up, showcasing Korean cosmetics, fashion, wellness products, and food to European visitors.
Lotte's expanded support programmes directly benefit its 12,000 suppliers by improving their liquidity and market access. The early payment scheme, totalling nearly $700 million before a major holiday, helps stabilise cash flows for small and midsize enterprises (SMEs) in its supply chain.
The Brand Expo, particularly the recent Madrid event, provides a tangible route for Korean SMEs to secure new export orders, such as the $34 million in potential deals identified. This ongoing support can strengthen the resilience and global competitiveness of Lotte's extensive network of Korean partners.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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