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023530 Lotte Shopping Co News Story

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REG - Lotte Shopping CoLtd - 1st Quarter Results <Origin Href="QuoteRef">023530.KS</Origin> - Part 2

- Part 2: For the preceding part double click  ID:nRSA9296Ca 

Increase in sales  
 Discount store    New and ordinary investments  Tangible and other assets  12,782                      3,700   4,545   4,537   Increase in sales  
 
 
※ The above plans are subject to change based on future business conditions. 
 
C.        Sales 
 
(Unit: million Won) 
 
 Department Store   Products                   Clothing, etc.        Export  0      0  
 Domestic           1,690,606                  1,697,733             
 Total              1,690,606                  1,697,733             
 Goods                                         Export                0       0      
 Domestic           0                          0                     
 Total              0                          0                     
 Others             Rental fee, etc.           Export                26      0      
 Domestic           287,670                    260,103               
 Total              287,696                    260,103               
 Total              1,978,302                  1,957,836             
 Discount Store     Products                   Food, etc.            Export  0      0  
 Domestic           1,987,912                  1,963,013             
 Total              1,987,912                  1,963,013             
 Goods                                         Export                0       0      
 Domestic           0                          0                     
 Total              0                          0                     
 Others             Rental fee, etc.           Export                0       0      
 Domestic           149,205                    142,468               
 Total              149,205                    142,468               
 Total              2,137,117                  2,105,481             
 Finance            Products                                         Export  0      0  
 Domestic           2,009                      1,164                 
 Total              2,009                      1,164                 
 Goods                                         Export                0       0      
 Domestic           0                          0                     
 Total              0                          0                     
 Others             Fees andcommissions, etc.  Export                0       0      
 Domestic           432,678                    409,025               
 Total              432,678                    409,025               
 Total              434,687                    410,189               
 Electronics        Products                   Electronics, etc.     Export  0      0  
 Domestic           884,380                    855,462               
 Total              884,380                    855,462               
 Goods                                         Export                0       0      
 Domestic           0                          0                     
 Total              0                          0                     
 Others             Rental fee, etc.           Export                0       0      
 Domestic           3,321                      3,431                 
 Total              3,321                      3,431                 
 Total              887,701                    858,893               
 Convenience store  Products                   Food, etc.            Export  0      0  
 Domestic           778,456                    642,882               
 Total              778,456                    642,882               
 Goods              Food, etc.                 Export                0       0      
 Domestic           0                          0                     
 Total              0                          0                     
 Others             Rental fees, etc.          Export                0       0      
 Domestic           52,457                     60,027                
 Total              52,457                     60,027                
 Total              830,913                    702,909               
 Others(1)          Products                   Food, etc.            Export  5,167  0  
 Domestic           603,555                    605,556               
 Total              608,722                    605,556               
 Goods              Food, etc.                 Export                0       0      
 Domestic           17,006                     13,518                
 Total              17,006                     13,518                
 Others             Rental fees, etc.          Export                0       0      
 Domestic           284,428                    280,991               
 Total              284,428                    280,991               
 Total              910,156                    900,065               
 Total              Products                   Clothing, food, etc.  Export  5,167  0  
 Domestic           5,946,918                  5,765,810             
 Total              5,952,085                  5,765,810             
 Goods              Clothing, food, etc.       Export                0       0      
 Domestic           17,006                     13,518                
 Total              17,006                     13,518                
 Others             Rental fees, etc.          Export                26      0      
 Domestic           1,209,759                  1,156,045             
 Total              1,209,785                  1,156,045             
 Total              7,178,876                  6,935,373             
 
 
1,209,785 
 
1,156,045 
 
Total 
 
7,178,876 
 
6,935,373 
 
Note: 
 
(1)                Represents adjustments for consolidation. 
 
D.        Risk Management 
 
See Note 39 of the notes to the attached condensed consolidated interim financial statements of the Company as of and for
three month period ended 31 March 2016. 
 
E.         Derivative Instruments and Hedge Accounting 
 
See Note 21 of the notes to the attached condensed consolidated interim financial statements of the Company as of and for
three month period ended 31 March 2016. 
 
F.         Important Management Contracts 
 
1.         Department store business 
 
The Company has entered into management agreements to manage certain department stores owned by its subsidiary Lotte
Station Building.  In return, the Company receives management fees from Lotte Station Building equal to 10% of the
operating income (before depreciation expenses) for the relevant department store, which is accounted for as other
operating income. 
 
2.         Credit card business 
 
Lotte Card has entered into card issuance agreements with American Express Company, Master Card International, Visa
International and UNIONPAY INTERNATIONAL whereby these companies receive from Lotte Card certain percentage of the credit
purchase amounts made on the credit cards issued pursuant to such agreements. 
 
3.         Other businesses 
 
a.     Woori Home Shopping 
 
Woori Home Shopping has entered into an operating lease agreement with Lotte Capital, KT Rental Corporation and a joint
card issuance agreement with Shinhan Card Co., Ltd., Lotte card wable on an annual basis. It has also entered into delivery
service agreements with Lotte Logistics, Hyundai Logistics Co., Ltd. and CJ Korea Express Corporation, as well as
broadcasting program supply agreements with multiple cable TV stations. 
 
b.    Korea Seven 
 
Korea Seven has entered into trademark and operational technology licensing agreements with 7-Eleven, Inc., pursuant to
which Korea Seven pays 0.6% of net sales amount as license fees.  Also, Korea Seven has granted 7-Eleven, Inc. the right to
purchase the shares of Korea Seven up to 10% of its total outstanding shares on January 1 of each year starting from 2003. 
Korea Seven has also entered into franchising contracts with franchisees and agency agreements with Lotte Logistics for
delivery of products to both company-run and franchise stores. 
 
c.     NCF 
 
NCF has a royalty agreement with Nice Claup Co., Ltd. pursuant to which NCF pays Nice Claup a sales royalty fee of 2.2% and
a production royalty fee of 0.3% of net sales from 1 December 2010 to 31 March 2016. 
 
d.    Buy the Way 
 
Buy the Way has entered into a guarantee agreement with Sportstoto guaranteeing payment of delivered goods and the
agreement is renewed every year. 
 
III.        Financial Matters 
 
Please refer to the Company's condensed consolidated interim financial statements of the Company as of and for three month
period ended 31 March 2016 and the related notes attached to this report. 
 
IV.       Auditor's Opinion 
 
A.         Audit (Review) Opinion on Consolidated Financial Statements 
 
1.         Name of auditor / accountants 
 
 47th fiscal year (1Q)  46th fiscal year  45th fiscal year  
 KPMG Samjong           KPMG Samjong      KPMG Samjong      
 
 
2.         Audit (review) opinion 
 
a.     Audit (review) for the current business year 
 
The auditor has reviewed the consolidated statements of financial position as of 31 March 2016 and 31 December 2015, as
well as the consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated
statements of cash flows of Lotte Shopping Co., Ltd. and its subsidiaries for the three months ended 31 March 2016 and
2015. 
 
3.             Audit contracts 
 
(Unit: million Won, hours) 
 
 Fiscal year            Auditor       Description                                                                                                              Fee  Total hours  
 47th fiscal year (1Q)  Samjong KPMG  Review of quarterly non-consolidated and consolidated financial statements                                               705  1,550        
 46th fiscal year       Samjong KPMG  Review of quarterly and semi-annual financial statementsAudit of non-consolidated and consolidated financial statements  670  12,100       
 45thfiscal year        Samjong KPMG  Review of quarterly and semi-annual financial statementsAudit of non-consolidated and consolidated financial statements  670  12,000       
 
 
4.         Contracts regarding non-audit services with outside auditor 
 
(Unit: million Won) 
 
 Fiscal year           Date of contract                                                         Description                                                                                       Service period     Fee  
 47thfiscal year (1Q)  16.02.17                                                                 Agreed upon proceedings with regard to royalties to Toys"R"Us                                     16.02.17 ~         9    
                                                                                                                                                                                                  16.02.19                
 46thfiscal year       15.03.10                                                                 Tax accounting due diligence related to acquisition                                               15.03.10 ~         25   
                                                                                                                                                                                                  15.06.30                
 15.03.16              Agreed upon proceedings with regard to royalties to Toys"R"Us            15.03.16 ~                                                                                        9                  
                                                                                                15.03.20                                                                                                             
 45rd fiscal year      14.07.23                                                                 Support and consultation related to the drafting of combined financial statements of Lotte Group  14.07.23~14.08.31  40   
 14.12.01              Taxation review on the transaction between Lotte Shopping and FRL Korea  14.12.01~14.12.31                                                                                 20                 
 
 
V.        Corporate Governance and Affiliates 
 
A.         Matters regarding Board of Directors 
 
1.         Overview of Board of Directors 
 
a.     Composition of Board of Directors 
 
Currently, the Company's board of directors (the "Board of Directors") is composed of 11 directors, of whom six are outside
directors. 
 
The Board of Directors decides important matters according to the basic management policies of the Company, matters
delegated from the general meeting of shareholders and matters required by the Articles of Incorporation or applicable
laws. 
 
b.    The Board of Director committees 
 
The Board of Directors may have subcommittees to achieve efficient and timely decision-making.  The Company currently has
an Audit Committee, an Outside Director Nomination Committee and an Internal Transaction Committee. Details regarding
operations, authority and composition of such committees are decided by the Board of Directors or relevant laws. 
 
2.         Matters regarding Board of Directors committees 
 
a.     Name, directors, objectives and authority 
 
 Audit Committee                        Three or more directors (at least two-thirds of whom must be outside directors)  Sukeun Kwak, JaeWan Bahk, SeokYoung Choi  ① The committee audits the Company's accounting and operations.② The committee reviews the            -  
                                                                                                                         (from 22 March 2016)                      appropriateness of its performances and regulations every year. If necessary, it proposes revisions to    
                                                                                                                                                                   the Board of Directors.③ In addition to carrying out the activities specified in items 1 and 2 above,    
                                                                                                                                                                   the committee also carries out activities specified by law, the Company's articles of incorporations     
                                                                                                                                                                   and the Board of Directors.                                                                              
 Outside Director Nomination Committee  Two or more directors (at least half of whom must be outside directors)          Wonjun Lee, Hyeryun KangJaeWan Bahk,      ① The committee recommends candidates for outside directors to the general meetingof shareholders.②   -  
                                                                                                                         (from 22 March 2016)                      The committee must recommend those candidates recommended by shareholders with applicable rights under    
                                                                                                                                                                   Article 542 Clause 6 of the Commercial Code.③ In addition to carrying out the activities specified in    
                                                                                                                                                                   items 1 and 2 above, the committee also carries out activities specified by law, the Company's           
                                                                                                                                                                   articles of incorporations and the Board of Directors.                                                   
 Internal Transaction Committee         Three or more directors (at least two-thirds of whom must beoutside directors)   Wonjun Lee, Chungsook MoonJaeWon Lee      This committee is responsible for reviewing and approving the following:① Internal transactions as    -  
                                                                                                                         (from 22 March 2016)                      defined under Article 11 Clause 2 of the Monopoly Regulation and Fair Trade Act and Article 17 Clause    
                                                                                                                                                                   8 of the related enforcement decree.② Transactions worth more Won 10 billion involving agreements with    
                                                                                                                                                                   certain affiliates as defined under Article 2 of the Monopoly Regulation and Fair Trade Act and          
                                                                                                                                                                   Article 3 of the related enforcement decree.③ Any matters as required for the operation of the other     
                                                                                                                                                                   committees.                                                                                              
 
 
Internal Transaction Committee 
 
Three or more directors (at least two-thirds of whom must beoutside directors) 
 
Wonjun Lee, Chungsook MoonJaeWon Lee
(from 22 March 2016) 
 
This committee is responsible for reviewing and approving the following:① Internal transactions as defined under Article 11
Clause 2 of the Monopoly Regulation and Fair Trade Act and Article 17 Clause 8 of the related enforcement decree.②
Transactions worth more Won 10 billion involving agreements with certain affiliates as defined under Article 2 of the
Monopoly Regulation and Fair Trade Act and Article 3 of the related enforcement decree.③ Any matters as required for the
operation of the other committees. 
 
- 
 
※ As of 31 March 2016 
 
B.        Affiliated Companies 
 
1.         Overview of affiliates 
 
a.     Domestic 
 
See list of affiliates on page 2. 
 
b.    Overseas 
 
(As of 31 March 2016) 
 
 Name of Investing Company                                                  Name of Invested Company                                                  Share Ratio  
 Chocolaterie Guylian N.V                                                   Aimee BVBA                                                                99.0%        
 Rakhat JSC                                                                 Almaty Sweets LLC                                                         100.0%       
 Lotte Confectionary Co., Ltd.                                              BIBICA Corporation                                                        44.0%        
 Burger King Japan Holdings Co., Ltd.                                       Burger King Japan Co., Ltd.                                               100.0%       
 Lotteria Co., Ltd.                                                         Burger King Japan Holdings Co., Ltd.                                      100.0%       
 Hyundai Logistics Co., Ltd.                                                CHANGWAN CONTAINER SERVICE LIMITED                                        70.0%        
 Lotte Chemical Titan International Limited                                 Chemical Brothers Limited                                                 100.0%       
 Chocolaterie Guylian N.V                                                   Chocolaterie Guylian Deutschland GmbH                                     100.0%       
 Lotte Confectionery Holdings (Europe) B.V.                                 Chocolaterie Guylian N.V                                                  99.97%       
 Chongqing Television & Media Co., Ltd.                                     Chongqing Yujia Co., Ltd.                                                 51.0%        
 HYUNDAI LOGISTICS (GERMANY) GMBH                                           CONTAINER DEPOT UND REPARATUR HAMBURG GMBH                                100.0%       
 Lotte Shopping Co., Ltd.                                                   Coralis S.A.                                                              45.0%        
 Coralis S.A.                                                               Coralis Vietnam Co., Ltd.                                                 100.0%       
 Daehong Communications Co., Ltd.                                           DAEHONG COMMUNICATIONS VIETNAM CO., LTD.                                  95.0%        
 BIBICA Corporation                                                         East BIBICA One Member Co., Ltd                                           100.0%       
 Lotte Mart China Co., Ltd.                                                 East Fine Enterprise Ltd.                                                 100.0%       
 Lotte Mart China Co., Ltd.                                                 Fine Port Ltd                                                             100.0%       
 Lotte Mart China Co., Ltd.                                                 Fine Spring Ltd.                                                          100.0%       
 Lotte Mart China Co., Ltd.                                                 Full Faith Development Ltd.                                               100.0%       
 Lotte Mart China Co., Ltd.                                                 Goldwell Corporation Ltd.                                                 100.0%       
 Chocolaterie Guylian N.V                                                   Guylian Asia Ltd                                                          99.9%        
 Chocolaterie Guylian N.V                                                   Guylian Iberia, LDA                                                       99.3%        
 Chocolaterie Guylian N.V                                                   Guylian UK Ltd                                                            100.0%       
 Chocolaterie Guylian N.V                                                   Guylian USA, Inc                                                          100.0%       
 Kotobuki Holding (HK) Ltd                                                  Hai Thanh-Kotobuki Joint Venture Co.                                      70.0%        
 Lucky Pai (Shanghai) Information Technology Co., Ltd.                      Hangzhou Lucky Pai Investment Co., Ltd.                                   100.0%       
 Hangzhou Lucky Pai Investment Co., Ltd.                                    Heilongjiang Fangxin TV Shopping Media Co., Ltd.                          49.0%        
 Lotte Shopping Co., Ltd.                                                   Hemisphere Film Investors II, LLC                                         100.0%       
 Hemisphere Film Investors II, LLC                                          Hemisphere Film Investors LLC                                             50.0%        
 HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                       HLC (GERMANY) GmbH                                                        51.0%        
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Hong Fung Ltd.                                                            100.0%       
 Hotel Lotte Co., Ltd.                                                      Hotel & Resort Joetsumyoko Co., Ltd.                                      100.0%       
 Hotel Lotte Co., Ltd.                                                      HOTEL LOTTE Holdings HK Limited                                           100.0%       
 Hyundai Information Technology Co., Ltd.                                   Hyundai Information Technology Vietnam Corporation                        100.0%       
 HYUNDAI LOGISTICS (AMERICA), INC.                                          Hyundai Intermodal, INC                                                   70.0%        
 HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                       HYUNDAI LOGISTICA BRASIL LTDA                                             51.0%        
 Hyundai Logistics Co., Ltd.                                                HYUNDAI LOGISTICS (AMERICA), INC.                                         100.0%       
 HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                    HYUNDAI LOGISTICS (CAMBODIA) CO.,LTD.                                     51.0%        
 Hyundai Logistics Co., Ltd.                                                HYUNDAI LOGISTICS (GERMANY) GMBH                                          100.0%       
 Hyundai Logistics Co., Ltd.                                                HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                   100.0%       
 HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                    HYUNDAI LOGISTICS (HK) INT'L LIMITED                                      51.0%        
 HYUNDAI LOGISTICS UK LIMITED                                               HYUNDAI LOGISTICS (ITALY) SRL                                             100.0%       
 Hyundai Logistics Co., Ltd.                                                HYUNDAI LOGISTICS (MALAYSIA) SDN. BHD.                                    100.0%       
 HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                       HYUNDAI LOGISTICS (NETHERLANDS) B.V.                                      51.0%        
 HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                    HYUNDAI LOGISTICS (SINGAPORE) PTE. LTD.                                   51.0%        
 Hyundai Logistics Co., Ltd.                                                HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                      100.0%       
 HYUNDAI LOGISTICS (AMERICA), INC.                                          HYUNDAI LOGISTICS (USA), INC.                                             70.6%        
 HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                    HYUNDAI LOGISTICS INDIA PRIVATE LIMITED                                   51.0%        
 HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                       HYUNDAI LOGISTICS UK LIMITED                                              51.0%        
 Hyundai Logistics Co., Ltd.                                                HYUNDAI VINATRANS LOGISTICS CO.,LTD                                       51.0%        
 Lotte Shopping Holdings (Singapore)Pte., Ltd                               INTERNATIONAL BUSINESS CENTER COMPANY LIMITED                             50.0%        
 Lotteria Co., Ltd.                                                         KKD Lotte Holdings                                                        100.0%       
 Lotte Kolson(Private) Limited                                              Kolson Industries(Pvt) Limited                                            100.0%       
 Lotte Chemical Corporation                                                 Kor-Uz Gas Chemical Investment Ltd.                                       49.0%        
 Lotte Hotel & Retail Vietnam Pte. Ltd.                                     Kotobuki Holding (HK) Ltd                                                 100.0%       
 Lotte Holdings Co., Ltd.                                                   L&S(Thailand) Co., Ltd.                                                   49.0%        
 LOTTE Chemical USA Corporation                                             LACC, LLC                                                                 90.0%        
 Lotte Food Holding Co., Ltd.                                               LH Foods Co., Ltd                                                         50.0%        
 Lotte Shopping Holdings (Hong Kong), Ltd                                   LHSC Limited                                                              51.1%        
 Lotte Co., Ltd.                                                            Lotte (MALAYSIA) SDN BHD                                                  100.0%       
 Lotte International Co., Ltd.                                              Lotte Agro Holdings B.V.                                                  100.0%       
 Lotte Agro Holdings B.V.                                                   Lotte Agro RUS LLC                                                        99.0%        
 Lotte Asset Development Co., Ltd.                                          LOTTE ASSET MANAGEMENT (HK) LIMITED                                       100.0%       
 Lotte Chilsung Beverage Co., Ltd.                                          LOTTE BEVERAGE AMERICA CORP.                                              100.0%       
 Lotte Chilsung Beverage Co., Ltd.                                          LOTTE Beverage Holdings (Singapore) Pte. Ltd.                             100.0%       
 Lotte Chemical Corporation                                                 Lotte Chemical Alabama Corporation                                        100.0%       
 LOTTE Chemical USA Corporation                                             LOTTE Chemical Louisiana, LLC                                             100.0%       
 Lotte Chemical Corporation                                                 Lotte Chemical Pakistan Limited                                           75.0%        
 Lotte Chemical Corporation                                                 LOTTE CHEMICAL POLAND SP. ZO.O                                            100.0%       
 Lotte Chemical Titan (M) Sdn. Bhd.                                         Lotte Chemical Singapore Pte. Ltd.                                        100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Lotte Chemical Titan (M) Sdn. Bhd.                                        100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Lotte Chemical Titan Capital (L) Limited                                  100.0%       
 Lotte Chemical Corporation                                                 Lotte Chemical Titan Holding Sdn. Bhd.                                    100.0%       
 PT. Lotte Chemical Titan Tbk                                               Lotte Chemical Titan International Limited                                100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Lotte Chemical Titan International Sdn. Bhd.                              100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Lotte Chemical Titan Trading Sdn. Bhd.                                    100.0%       
 Lotte Chemical Corporation                                                 Lotte Chemical UK Limited                                                 100.0%       
 Lotte Chemical Corporation                                                 LOTTE Chemical USA Corporation                                            100.0%       
 Lotte Confectionary Co., Ltd.                                              Lotte Confectionery (S.E.A.) Pte Ltd                                      100.0%       
 Lotte Confectionary Co., Ltd.                                              Lotte Confectionery Holdings (Europe) B.V.                                51.0%        
 Lotte Co., Ltd.                                                            Lotte Confectionery Pilippinas Corp.                                      100.0%       
 Lotte Europe Holdings B.V.                                                 Lotte Confectionery RUS                                                   100.0%       
 Lotte Data Communications Company                                          Lotte Data Communication Company Limited Vietnam                          100.0%       
 Woori Home Shopping                                                        Lotte DatViet Homeshopping Co.,Ltd.                                       85.6%        
 Lotte Holdings Co., Ltd.                                                   Lotte Do Brasil Alimentos Ltda                                            99.0%        
 LOTTE DUTY FREE SINGAPORE PTE. LTD.                                        Lotte Duty Free (Thailand) Co., Ltd                                       49.0%        
 Hotel Lotte Co., Ltd.                                                      Lotte Duty Free Guam, LLC                                                 0.0%         
 Hotel Lotte Co., Ltd.                                                      Lotte Duty Free Hong Kong Ltd.                                            100.0%       
 Hotel Lotte Co., Ltd.                                                      Lotte Duty Free Japan Co., Ltd.                                           80.0%        
 Hotel Lotte Co., Ltd.                                                      Lotte Duty Free Kansai Co., Ltd.                                          100.0%       
 Hotel Lotte Co., Ltd.                                                      LOTTE DUTY FREE SINGAPORE PTE. LTD.                                       100.0%       
 Lotte Engineering & Construction Co., Ltd.                                 Lotte E&C Malaysia Sdn. Bhd.                                              100.0%       
 Lotte Shopping Holdings (Singapore)Pte., Ltd                               LOTTE E-COMMERCE VIETNAM CO., LTD                                         100.0%       
 Lotte Engineering & Construction Co., Ltd.                                 Lotte Engineering and Construction India Pvt. Ltd.                        100.0%       
 Lotte Engineering & Construction Co., Ltd.                                 Lotte Engineering and Construction Vietnam Co., Ltd                       100.0%       
 Lotte Engineering & Construction Co., Ltd.                                 Lotte Engineering Construction Mongolia LLC                               100.0%       
 Hotel Lotte Co., Ltd.                                                      Lotte Europe Holdings B.V.                                                37.9%        
 Lotte Europe Holdings B.V.                                                 Lotte Europe Investment                                                   100.0%       
 Lotte Confectionary Co., Ltd.                                              Lotte Food Holding Co., Ltd.                                              100.0%       
 Lotte Co., Ltd.                                                            Lotte Four Seas Ltd.(MKG)                                                 70.0%        
 Lotte Properties(Shenyang) Ltd.                                            Lotte Glory Properties(Shenyang) Ltd.                                     100.0%       
 Hotel Lotte Co., Ltd.                                                      Lotte Hotel & Retail Vietnam Pte. Ltd.                                    40.0%        
 Hotel Lotte Co., Ltd.                                                      Lotte Hotel Guam LLC.                                                     100.0%       
 Hotel Lotte Co., Ltd.                                                      LOTTE HOTEL HOLDINGS USA CO., LTD.                                        100.0%       
 LOTTE HOTEL HOLDINGS USA CO., LTD.                                         LOTTE HOTEL NEW YORK PALACE, LLC                                          100.0%       
 Lotte Europe Holdings B.V.                                                 Lotte Hotel Saint Petersburg LLC                                          100.0%       
 Hotel Lotte Co., Ltd.                                                      LOTTE HOTEL VIETNAM COMPANY LIMITED                                       100.0%       
 Lotte Confectionary Co., Ltd.                                              Lotte India Co., Ltd.                                                     98.6%        
 Lotte International Co., Ltd.                                              Lotte International America Corp.                                         100.0%       
 Lotte International Co., Ltd.                                              LOTTE INTERNATIONAL OCEANIA PTY LTD.                                      100.0%       
 Lotte Confectionary Co., Ltd.                                              Lotte Kolson(Private) Limited                                             96.5%        
 Lotte Asset Development Co., Ltd.                                          Lotte Land (Singapore) Private Limited                                    100.0%       
 Lotte Chilsung Beverage Co., Ltd.                                          LOTTE LIQUOR JAPAN CO.,LTD                                                100.0%       
 Lotte (Beijing) Logistics Co., Ltd.                                        LOTTE Logistics (Hong Kong) Co., Limited                                  90.0%        
 Lotte Logistics Corporation                                                Lotte Logistics Vietnam CO.,LTD                                           100.0%       
 Lotte Shopping Holdings (Singapore) Pte., Ltd                              Lotte Mart C&C India Private Limited                                      100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte Mart China Co., Ltd.                                                100.0%       
 Lotte Card Co., Ltd.                                                       Lotte Members Vietnam Co., Ltd.                                           100.0%       
 LOTTE Beverage Holdings (Singapore) Pte. Ltd.                              LOTTE MGS Beverage (Myanmar) Co., Ltd.                                    76.6%        
 Nugget Food Corporation                                                    Lotte Philippines Co., Ltd.                                               49.0%        
 Lotte Shopping Co., Ltd.                                                   LOTTE PROPERTIES (CHENGDU) HK LIMITED                                     73.5%        
 Lotte Asset Development Co., Ltd.                                          LOTTE PROPERTIES (HANOI) SINGAPORE PTE. LTD.                              100.0%       
 Lotte Asset Development Co., Ltd.                                          Lotte Properties(Shenyang) Ltd.                                           37.2%        
 Lotte Rental Co., Ltd.                                                     LOTTE Rent-A-Car (Thailand) Co., Ltd.?                                    49.0%        
 Lotte Rental Co., Ltd.                                                     Lotte Rental (Vietnam) Company Limited                                    100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte Shopping Business Management (Hong Kong) Limited                    100.0%       
 Lotte Shopping Co., Ltd.                                                   Lotte Shopping Holdings (Hong Kong), Ltd                                  100.0%       
 Lotte Shopping Co., Ltd.                                                   Lotte Shopping Holdings (Singapore) Pte., Ltd                             100.0%       
 Lotte Shopping Holdings (Singapore) Pte., Ltd                              Lotte Shopping India Pvt., Ltd                                            90.0%        
 Lotte Shopping Holdings (Singapore) Pte., Ltd                              Lotte Shopping Plaza Vietnam Co., Ltd.                                    100.0%       
 Lotte Europe Holdings B.V.                                                 Lotte Shopping RUS                                                        100.0%       
 Lotte Holdings Co., Ltd.                                                   Lotte Singapore Pte. Ltd.                                                 100.0%       
 Lotte Confectionary Co., Ltd.                                              Lotte Taiwan Co., Ltd.                                                    50.0%        
 Lotte Co., Ltd.                                                            Lotte U.S.A. INC.                                                         100.0%       
 Lotte Chemical Corporation                                                 LOTTE UBE SYNTHETIC RUBBER SDN. BHD.                                      40.0%        
 Lotte Co., Ltd.                                                            Lotte Vietnam Co., Ltd.                                                   60.5%        
 Lotte Shopping Co., Ltd.                                                   Lotte Vietnam Shopping Co., Ltd                                           100.0%       
 Lotte International Co., Ltd.                                              Lotte Vina International Co., Ltd.                                        100.0%       
 Lotte Holdings Co., Ltd.                                                   Lotte wedel SP. ZO. O                                                     100.0%       
 Lotte Shopping Co., Ltd.                                                   Lotte Cinema Vietnam                                                      90.0%        
 Hyundai Information Technology Co., Ltd.                                   Lotte-HPT High Tech. Vietnam Shareholding Company                         50.0%        
 LHSC Limited                                                               Luck Pai Ltd.                                                             100.0%       
 Luck Pai Ltd.                                                              Lucky Pai (Shanghai) Information Technology Co., Ltd.                     100.0%       
 Luck Pai Ltd.                                                              Lucky Pai (Shanghai) Network Technology Co., Ltd.                         100.0%       
 Luck Pai Ltd.                                                              Lucky Pai (Shanghai) Trading Co., Ltd.                                    100.0%       
 Luck Pai Ltd.                                                              Lucky Pai (Shanghai) Commercial Co., Ltd.                                 100.0%       
 Lotte Mart China Co., Ltd.                                                 Ocean Rich International Ltd.                                             100.0%       
 Lotte Chilsung Beverage Co., Ltd.                                          Pepsi-Cola Products Philippines, Inc.                                     38.9%        
 Lotte Wedel sp.zo.o                                                        Pijalnie Czekolady Wedel Sp.zo.o.                                         100.0%       
 Chemical Brothers Limited                                                  PT LOTTE CHEMICAL TITAN NUSANTARA                                         99.9%        
 Lotte Confectionary Co., Ltd.                                              PT LOTTE RND CENTER INDONESIA                                             33.0%        
 Lotte Shopping Holdings (Singapore) Pte., Ltd                              PT LOTTE SHOPPING AVENUE INDONESIA                                        99.0%        
 Daehong Communications Co., Ltd.                                           PT. Daehong Communications Indonesia                                      99.0%        
 Lotte Capital Co., Ltd.                                                    PT. LOTTE CAPITAL INDONESIA                                               78.1%        
 Lotte Chemical Titan International Sdn. Bhd.                               PT. Lotte Chemical Titan Tbk                                              95.2%        
 Lotte Logistics Corporation                                                PT. Lotte Logistics Indonesia                                             99.0%        
 Lotte Aluminium Co., Ltd.                                                  PT. Lotte Packaging                                                       99.4%        
 Lotte Shopping Co., Ltd.                                                   PT. Lotte Shopping Indonesia                                              55.0%        
 Hotel Lotte Co., Ltd.                                                      PT. SJ Indonesia                                                          90.0%        
 PT. Lotte Chemical Titan Tbk                                               PT. Titan Trading                                                         99.6%        
 Lotte Data Communications Company                                          PT. Lotte Data Communication Company Indonesia                            99.8%        
 Lotte Co., Ltd.                                                            PT. Lotte Indonesia                                                       98.3%        
 Lotte Shopping Holdings (Singapore) Pte., Ltd                              PT. Lotte Mart Indonesia                                                  99.0%        
 Lotte Card Co., Ltd.                                                       PT. LOTTE MEMBERS INDONESIA                                               99.0%        
 Lotte Co., Ltd.                                                            PT. Lotte Trade and Distribution                                          60.0%        
 Lotteria Co., Ltd.                                                         PT. Lotteria Indonesia                                                    51.0%        
 Lotte Confectionary Co., Ltd.                                              Rakhat JSC                                                                92.4%        
 Rakhat JSC                                                                 Rakhat TR                                                                 99.9%        
 Rakhat JSC                                                                 Rakhat Trading House LLP                                                  100.0%       
 Rakhat JSC                                                                 Rakhat-Aktau LLP                                                          100.0%       
 Rakhat JSC                                                                 Rakhat-Aktobe LLP                                                         100.0%       
 Rakhat JSC                                                                 Rakhat-Astana LLP                                                         100.0%       
 Rakhat JSC                                                                 Rakhat-Karaganda LLP                                                      100.0%       
 Rakhat JSC                                                                 Rakhat-Oral LLP                                                           100.0%       
 Rakhat JSC                                                                 Rakhat-Shymkent LLP                                                       100.0%       
 Rakhat JSC                                                                 Rakhat-Shymkent Trading House LLP                                         100.0%       
 Rakhat JSC                                                                 Rakhat-Taldykorgan LLP                                                    100.0%       
 Hyundai Logistics Co., Ltd.                                                Shaghai Hyundai Asia Shipping International Freight Forwarding Co., Ltd.  66.0%        
 Lucky Pai (Shanghai) Information Technology Co., Ltd.                      Shanghai Jijie Commercial Trading Co., Ltd.                               100.0%       
 Lucky Pai (Shanghai) Information Technology Co., Ltd.                      Shanghai Jirong Commercial Trading Co., Ltd.                              100.0%       
 Lucky Pai (Shanghai) Information Technology Co., Ltd.                      Shanghai Wenxuan Co., Ltd.                                                100.0%       
 Chemical Brothers Limited                                                  South Wealth Finance Limited                                              100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Swift Harvest Ltd.                                                        100.0%       
 Lotte Co., Ltd.                                                            Thai Lotte Co., Ltd.                                                      98.2%        
 Lotte Four Seas Ltd.                                                       Thai Okashi Land Co., Ltd                                                 49.0%        
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Titan Chemicals International Limited                                     100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Titan Ethylene Glycol Sdn. Bhd.                                           100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Titan Leasing Ltd.                                                        100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Titan Petrochemicals Sdn. Bhd.                                            100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Titan Styrene Sdn. Bhd.                                                   100.0%       
 Lotte Chemical Titan Trading Sdn. Bhd.                                     Titan Trading Corp. Limited                                               100.0%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                     Titan Vinyl Sdn. Bhd.                                                     100.0%       
 Lotteria Co., Ltd.                                                         Vietnam Lotteria. Ltd.                                                    99.7%        
 Lotte Mart China Co., Ltd.                                                 Waho (China) Ltd.                                                         100.0%       
 Lotte Mart China Co., Ltd.                                                 Wealthland Corporation Ltd.                                               100.0%       
 Lotte Europe Holdings B.V.                                                 ZAO Lotte RUS                                                             100.0%       
 Swift Harvest Ltd.                                                         Jiaxing Lotte Mart Co., Ltd.                                              100.0%       
 Swift Harvest Ltd.                                                         Gang So Lotte Ma Teuk Sang Eop Ltd.                                       100.0%       
 Nam Tong Hui Hang Chi Eop Ltd.                                             Gang Eon Si Gwang Won Chi Eop Ltd.                                        100.0%       
 Gang So Lotte Ma Teuk Sang Eop Ltd.                                        Gyedong Lotte Mart Co., Ltd.                                              100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Jilin Lotte Mart Co., Ltd.                                                100.0%       
 Lotte Logistics Corporation                                                Lotte (Beijing) Logistics Co., Ltd.                                       100.0%       
 LH Foods Co., Ltd                                                          Lotte Food (Shanghai) Ltd.                                                90.0%        
 Lotte Shopping Co., Ltd.                                                   Lotte Corporation Management (China) Ltd.                                 70.0%        
 Lotte Confectionary Co., Ltd.                                              Lotte Food (China) Ltd.                                                   47.2%        
 Lotte Food Holding Co., Ltd.                                               Lotte Investment (China) Ltd.                                             100.0%       
 Lotte Confectionary Co., Ltd.                                              Lotte Food (Chengdu) Ltd.                                                 90.0%        
 KKD Lotte Holdings                                                         Lotte GaYeJaChanEum Management (Shanghai) Ltd.                            100.0%       
 Lotte Construction (Beijing) Ltd.                                          Lotte Construction (Shenyang) Ltd.                                        100.0%       
 Lotte Chemical Corporation                                                 Lotte GongJeongSoRyo (Gaheung) Ltd.                                       100.0%       
 Lotte Chemical Corporation                                                 Lotte GongJeongSoRyo (Shenyang) Ltd.                                      100.0%       
 Lotte Chemical Corporation                                                 Lotte GongJeongSoRyo (Hapbi) Ltd.                                         50.0%        
 Lotte Confectionary Co., Ltd.                                              Lotte NaengEum (Shandong) Ltd.                                            65.0%        
 Lotteria Co., Ltd.                                                         Lotte LiChanEum Management (Beijing) Ltd.                                 100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte MaTeuk Trade (Sungdo) Ltd.                                          100.0%       
 GangSo Lotte MaTeukSangEop Ltd.                                            Lotte MaTeuk Mart (Soju) Ltd.                                             100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte MaTeuk Trade (Chungkyung) Ltd.                                      100.0%       
 Lotte Properties(Shenyang) Ltd.                                            Lotte Logistics Management (Shenyang) Ltd.                                100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte Department Store (Chengdu) Ltd.                                     100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte Department Store (Shenyang) Ltd.                                    100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte Department Store (Tianjin) Ltd.                                     100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte Trade Management (Uihae) Ltd.                                       100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte Trade Management (Tianjin) Ltd.                                     100.0%       
 Lotte Engineering & Construction Co., Ltd.                                 Lotte Sung Construction (Beijing) Ltd.                                    100.0%       
 Lotte Data Communications Company                                          Lotte New Technology (Beijing) Ltd.                                       100.0%       
 Lotte New Technology (Beijing) Ltd.                                        Lotte New Technology (Shenyang) Ltd.                                      100.0%       
 Swift Harvest Ltd.                                                         Lotte Younghang Mart (Shanghai) Ltd.                                      100.0%       
 Lotte Chilsung Beverage Co., Ltd.                                          Lotte Oh Deo Ri Beverage Ltd.                                             100.0%       
 HOTEL LOTTE Holdings HK Limited                                            Lotte Yu Rak (Shenyang) Ltd.                                              100.0%       
 Hotel Lotte Co., Ltd.                                                      Lotte Duty Free Beijing Co., Ltd.                                         100.0%       
 Lotte Capital Co., Ltd.                                                    Lotte Yoong Ja JoIm (China) Ltd.                                          100.0%       
 Lotte Card Co., Ltd.                                                       LOTTE Members China                                                       100.0%       
 Lotte Chilsung Beverage Co., Ltd.                                          Lotte Changbaek Beverage Ltd.                                             100.0%       
 Lotte Chilsung Beverage Co., Ltd.                                          Lotte JuEop (Beijing) Ltd.                                                100.0%       
 LOTTE PROPERTIES (CHENGDU) HK LIMITED                                      Lotte Jisan (Chengdu) Ltd.                                                100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Lotte Mart Co., Ltd.                                                      100.0%       
 Lotte Aluminium Co., Ltd.                                                  Lotte PoJang (Beijing) Ltd.                                               40.0%        
 LOTTE ASSET MANAGEMENT (HK) LIMITED                                        Lotte HangMokJaSoon (Shanghai) Ltd.                                       100.0%       
 Lotte Chemical Corporation                                                 Lotte Chemical (Gaheung) Ltd.                                             100.0%       
 Nam Tong Gang Poong Chi Eop Ltd.                                           Nam Tong Gang Poong Changjeo Ltd.                                         100.0%       
 Hong Fung Ltd.                                                             Nam Tong Gang Poong Chi Eop Ltd.                                          100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Nam Tong Geum Woo Chi Eop Ltd.                                            100.0%       
 Gang So Lotte Ma Teuk Sang Eop Ltd.                                        Nam Tong Deok Shin Chi Eop Ltd.                                           100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Nam Tong Mi Rim Chi Eop Ltd.                                              100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Nam Tong Bu Mu Chi Eop Ltd.                                               100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Nam Tong Bu Hwa Chi Eop Ltd.                                              100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Nam Tong Bun Dal Chi Eop Ltd.                                             100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Nam Tong Yo Dong Chi Eop Ltd.                                             100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Nam Tong Chun Hwi Chi Eop Ltd.                                            100.0%       
 Lotte Shopping Holdings (Hong Kong), Ltd                                   Nam Tong Hwi Hang Chi Eop Ltd.                                            100.0%       
 Daehong Communications Co., Ltd.                                           Daehong Advertisement (Shanghai) Ltd.                                     100.0%       
 Lotte Holdings Co., Ltd.                                 

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