Lotte executives including Park Chan-bok, chief executive of Lotte Global Logistics Co., and Hwang Kag-gyu, vice chairman of Lotte Corporation, attend a vision ceremony for the conglomerate’s newly merged logistics unit Lotte Global Logistics on Wednesday at Lotte Hotel in central Seoul. [Photo provided by Lotte Group]

South Korea’s fifth-largest conglomerate Lotte Group is seeking to find new revenue sources by beefing up its logistics business through a merger between affiliates with an aim to raise 5 trillion won ($4.4 billion) in sales by 2025.

Lotte Global Logistics Co., logistics and shipping unit under Lotte Group that began operations this month after a merger between Lotte Global Logistics and Lotte Logistics Co., on Wednesday held a ceremony to declare its vision as the country’s second-largest logistics company with 3 trillion won in sales. Lotte Logistics, a unit with logistics infrastructure operation knowhow in retail and manufacturing, was incorporated into Lotte Global Logistics that has networks in 12 countries, on March 1.

At the vision ceremony, the new entity said it will aim to provide a one-stop service in logistics from overseas distribution to inland transport and warehouse operation. It will also aim to strategically expand infrastructure and maximize synergy to raise 5 trillion won in sales by 2025.

Currently, CJ Logistics Corp. is Korea’s largest transportation and logistics services provider that raised 9.2 trillion won in sales last year, more than triple to that of Lotte Global Logistics.

As part of efforts to strengthen competitiveness and provide more sophisticated service, Lotte Global Logistics said it will build a 300 billion won mega hub terminal. The newly merged entity signed an investment agreement with Jincheon County and North Chungcheong Province last year to build a distribution center in an industrial complex in the region by 2022. The three-story distribution center with total floor area of 159,394 square meters will be built on 144,666 square meter land area.

Lotte Global Logistics also plans to aggressively make inroads into overseas markets such as Vietnam and Indonesia through merger and acquisitions.

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