(Yonhap)

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Lotte Group affiliates with solid credit ratings continue to tap the public bond market although the overall size of the South Korean conglomerates public bond issuance shrunk significantly in 2025.

According to sources from the investment banking (IB) industry on Tuesday, Lotte Shopping Co. (credit rating AA-) and Lotte Chilsung Beverage Co. (AA) are scheduled to issue public bonds in September 2025.

It will be their second issuance this year for both companies, with Lotte Shopping raising 250 billion won ($180.04 million) and Lotte Chilsung raising 200 billion won in the first half of the year.

“Both companies, backed by stable credit ratings, are expected to have little difficulty securing demand from institutional investors,” an industry official said.

According to the financial investment industry, Lotte Group issued a total of 4.09 trillion won worth of public bonds in 2024, the fourth largest among major conglomerates in the country. But its issuance has amounted to only 1.84 trillion won in 2025 to date, ranking seventh and representing a 42 percent decrease compared with the same period a year ago.

One factor behind the decline is that it was difficult for Lotte Chemical Corp., a key affiliate, to enter the market due to sluggish industry conditions.

Consequently, the group’s bond issuance this year has been led mainly by consumer goods and retail affiliates such as Lotte Wellfood Co. (AA), Hotel Lotte Co. (AA-), and Lotte Shopping (AA-).