A PYMNTS Company

South Korea’s Lotte Wins Approval for $953 Million Rental-Car Stake Sale

By  |  September 1, 2026
Car Rental

Lotte Group has secured South Korean regulatory approval to sell its controlling interest in Lotte Rental, advancing a broader effort by the conglomerate to shed non-core assets and shore up its balance sheet as earnings improve at several major businesses.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The Korea Fair Trade Commission approved the transaction Tuesday, according to the Korea Herald. The deal, involving shares owned by Hotel Lotte and Busan Lotte Hotel, is expected to be completed in October.

    Lotte agreed in August to sell a combined 61.2% stake in Lotte Rental for 1.31 trillion won ($953 million), equivalent to 59,000 won a share, according to the Korea Herald. The company plans to direct proceeds toward strengthening the finances of its hotel businesses, renovating properties and expanding premium brands.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    The transaction is part of a wider restructuring campaign that has generated about 1.7 trillion won from asset disposals this year, the Korea Herald reported. Those moves have included the sale of interests or properties associated with Lotte Energy Materials’ Lotte Ecowall subsidiary, Lotte Shopping, Lotte Wellfood and Lotte Nestle Korea.

    Lotte is also reshaping its chemicals operations amid pressure to improve efficiency in the sector. Lotte Chemical’s Daesan facility in South Chungcheong Province recently combined with HD Hyundai Chemical to create H&L Advanced, a venture owned equally by Lotte Chemical and HD Hyundai Oilbank, according to the Korea Herald. Lotte’s Yeosu operation in South Jeolla Province is pursuing similar discussions with affiliated companies.

    Read more: South Korea Blocks Private Equity Takeover of Leading Car Rental Firm

    The asset sales and industrial restructuring coincide with a recovery in earnings at some of Lotte’s largest units. Lotte Shopping posted first-half operating profit of 342.8 billion won, an 81.5% increase from a year earlier, while Hotel Lotte’s operating profit more than tripled to 135.6 billion won, according to figures cited by the Korea Herald.

    A Lotte official said the regulatory clearance, combined with the improvement in earnings, should bolster the conglomerate’s profitability and financial position, according to the Korea Herald. The official also said Lotte intends to accelerate restructuring during the second half of the year by disposing of additional non-core and underused assets.

    The Lotte Rental transaction adds to a series of measures aimed at concentrating capital on businesses the group considers strategically important while reducing holdings that can be monetized. Completion of the sale in October would provide another significant infusion of funds to its hotel operations as Lotte continues its portfolio overhaul.

    Source: The Korea Herald