The logo of Lotte Shopping's L.HONORS CLUB shareholder benefits program. [Lotte Shopping]
The logo of Lotte Shopping's L.HONORS CLUB shareholder benefits program. [Lotte Shopping]

Lotte Shopping announced it will launch a shareholder benefits program called "L.HONORS CLUB" in November, becoming the first large conglomerate in South Korea to introduce such a system. The initiative aims to diversify shareholder returns beyond its existing dividend-focused policy and deepen its partnership with shareholders.

The name "L.HONORS CLUB" is meant to evoke "honorable shareholders who contribute to the company's growth." Built on Lotte Group's integrated membership platform L.Point, the program offers benefits including points accumulation and discount coupons. The company aims to attract new shareholders and build long-term partnerships by enhancing the value it offers to existing ones.

Benefits are tailored to the size and duration of a shareholder's holdings. All shareholders holding at least one share will receive a one-time welcome coupon offering 10 to 20 percent discounts usable at Lotte department stores, marts, supermarkets and e-commerce platforms upon first enrollment. A points-accumulation benefit tied to purchase activity is also included.

Shareholders on record as of the end of September will be among the first to receive benefits. Those on record at year-end will become eligible from Feb. 1 next year. Benefits will be renewed on a three-month cycle.

Premium perks will be added for high-value, long-term shareholders — those holding 1,000 or more shares, placing them in the top 1 percent, for at least one year. These include access to department store lounges, valet and parking passes, and discount and free-delivery coupons for use at marts, supermarkets and e-commerce platforms.

Shareholder benefit programs currently exist in South Korea mainly among smaller consumer goods companies. In Japan, by contrast, roughly 40 percent of all listed companies operate such programs. "We launched this program — the first of its kind among large domestic conglomerates — to provide shareholders with tangible benefits and enhance shareholder value," said Lim Jae-cheol, head of Lotte Shopping's finance division. "We will build long-term trust with our shareholders and raise the company's overall value."


korean@heraldcorp.com