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023530 Lotte Shopping Co News Story

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REG - Lotte Shopping CoLtd - 3rd Quarter Results <Origin Href="QuoteRef">023530.KS</Origin> - Part 2

- Part 2: For the preceding part double click  ID:nRSV5561Sa 

 
 Total              4,839,639                  4,893,623             
 Goods                                         Export                -       -       
 Domestic           -                          -                     
 Total              -                          -                     
 Others             Rental fee, etc.           Export                26      -       
 Domestic           849,996                    772,413               
 Total              850,022                    772,413               
 Total              5,689,661                  5,666,036             
 Discount Store     Products                   Food, etc.            Export  17      -      
 Domestic           5,862,458                  5,920,369             
 Total              5,862,475                  5,920,369             
 Goods                                         Export                -       -       
 Domestic           -                          -                     
 Total              -                          -                     
 Others             Rental fee, etc.           Export                -       -       
 Domestic           429,153                    427,441               
 Total              429,153                    427,441               
 Total              6,291,628                  6,347,810             
 Finance            Products                                         Export  -       -      
 Domestic           4,847                      2,886                 
 Total              4,847                      2,886                 
 Goods                                         Export                -       -       
 Domestic           -                          -                     
 Total              -                          -                     
 Others             Fees andcommissions, etc.  Export                -       -       
 Domestic           1,379,343                  1,356,636             
 Total              1,379,343                  1,356,636             
 Total              1,384,190                  1,359,522             
 Electronics        Products                   Electronics, etc.     Export  -       -      
 Domestic           2,948,154                  2,878,773             
 Total              2,948,154                  2,878,773             
 Goods                                         Export                -       -       
 Domestic           -                          -                     
 Total              -                          -                     
 Others             Rental fee, etc.           Export                -       -       
 Domestic           11,681                     11,596                
 Total              11,681                     11,596                
 Total              2,959,835                  2,890,369             
 Convenience store  Products                   Food, etc.            Export  -       11     
 Domestic           2,596,609                  2,307,974             
 Total              2,596,609                  2,307,985             
 Goods              Food, etc.                 Export                -       -       
 Domestic           -                          -                     
 Total              -                          -                     
 Others             Rental fees, etc.          Export                -       -       
 Domestic           170,891                    204,159               
 Total              170,891                    204,159               
 Total              2,767,500                  2,512,144             
 Others(1)          Products                   Food, etc.            Export  13,809  6,436  
 Domestic           1,881,648                  1,895,749             
 Total              1,895,457                  1,902,185             
 Goods              Food, etc.                 Export                -       -       
 Domestic           37,948                     34,325                
 Total              37,948                     34,325                
 Others             Rental fees, etc.          Export                -       -       
 Domestic           958,112                    934,915               
 Total              958,112                    934,915               
 Total              2,891,517                  2,871,425             
 Total              Products                   Clothing, food, etc.  Export  14,436  6,447  
 Domestic           18,132,745                 17,899,374            
 Total              18,147,181                 17,905,821            
 Goods              Clothing, food, etc.       Export                -       -       
 Domestic           37,948                     34,325                
 Total              37,948                     34,325                
 Others             Rental fees, etc.          Export                26      -       
 Domestic           3,799,176                  3,707,160             
 Total              3,799,202                  3,707,160             
 Total              21,984,331                 21,647,306            
 
 
3,799,202 
 
3,707,160 
 
Total 
 
21,984,331 
 
21,647,306 
 
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
Six month period ended 30 September 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
Six month period ended 30 September 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% of
net sales from 1 April 2016 to 1 March 2020. 
 
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 30 September 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 (3Q)  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 30 September 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 nine months ended 30 September 2016 and
2015. 
 
3.             Audit contracts 
 
(Unit: million Won, hours) 
 
 Fiscal year            Auditor       Description                                                                                                              Fee  Total hours  
 47th fiscal year (3Q)  Samjong KPMG  Review of quarterly and semi-annual financial statementsAudit of non-consolidated and consolidated financial statements  705  6,400        
 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 (3Q)  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 10 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 30 September 2016 
 
B.        Affiliated Companies 
 
1.         Overview of affiliates 
 
a.     Domestic 
 
See list of affiliates on page 2. 
 
b.    Overseas 
 
(As of 30 September 2016) 
 
 Name of Investing Company                                               Name of Invested Company                                                Share Ratio  
 Chocolaterie Guylian N.V                                                Aimee BVBA                                                              99.00%       
 Rakhat JSC                                                              Almaty Sweets LLC                                                       100.00%      
 Lotte Confectionary Co., Ltd.                                           BIBICA Corporation                                                      44.00%       
 Burger King Japan Holdings Co.,Ltd.                                     Burger King Japan Co., Ltd.                                             100.00%      
 Lotteria Co., Ltd.                                                      Burger King Japan Holdings Co.,Ltd.                                     100.00%      
 Hyundai Logistics Co., Ltd.                                             CHANGWAN CONTAINER SERVICE LIMITED                                      70.00%       
 Lotte Chemical Titan International Limited                              Chemical Brothers Limited                                               100.00%      
 Chocolaterie Guylian N.V                                                Chocolaterie Guylian Deutschland GmbH                                   100.00%      
 Lotte Confectionery Holdings (Europe) B.V.                              Chocolaterie Guylian N.V                                                100.00%      
 Lucky Pai (Shanghai) Trading Co.,Ltd.                                   Chongqing Yujia Lucky Pai Commercial Co., Ltd.                          74.20%       
 HYUNDAI LOGISTICS (GERMANY) GMBH                                        CONTAINER DEPOT UND REPARATUR HAMBURG GMBH                              100.00%      
 Lotte Shopping Co., Ltd.                                                Coralis S.A.                                                            45.00%       
 Coralis S.A.                                                            Coralis Vietnam Co.,Ltd.                                                100.00%      
 Daehong Communications Co., Ltd.                                        DAEHONG COMMUNICATIONS VIETNAM CO., LTD.                                95.00%       
 BIBICA Corporation                                                      East BIBICA One Member Co.,Ltd                                          100.00%      
 Chocolaterie Guylian N.V                                                Guylian Asia Ltd                                                        99.90%       
 Chocolaterie Guylian N.V                                                Guylian Iberia, LDA                                                     99.30%       
 Chocolaterie Guylian N.V                                                Guylian UK Ltd                                                          100.00%      
 Chocolaterie Guylian N.V                                                Guylian USA, Inc                                                        100.00%      
 Kotobuki Holding (HK) Ltd                                               Hai Thanh-Kotobuki Joint Venture Co.                                    70.00%       
 Lotte Shopping Co., Ltd.                                                Hemisphere Film Investors II, LLC                                       100.00%      
 Hemisphere Film Investors II, LLC                                       Hemisphere Film Investors LLC                                           50.00%       
 HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                    HLC (GERMANY) GmbH                                                      51.00%       
 Lotte Shopping Holdings  (Hong Kong) Co., Limited                       Hong Fung Ltd.                                                          100.00%      
 Hotel Lotte Co., Ltd.                                                   Hotel & Resort Joetsumyoko Co., Ltd.                                    100.00%      
 Hotel Lotte Co., Ltd.                                                   HOTEL LOTTE Holdings HK Limited                                         100.00%      
 Hyundai Information Technology Co., Ltd.                                Hyundai Information Technology Vietnam Corporation                      100.00%      
 HYUNDAI LOGISTICS (AMERICA), INC.                                       Hyundai Intermodal, INC                                                 70.00%       
 HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                    HYUNDAI LOGISTICA BRASIL LTDA                                           51.00%       
 Hyundai Logistics Co., Ltd.                                             HYUNDAI LOGISTICS (AMERICA), INC.                                       100.00%      
 HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                 HYUNDAI LOGISTICS (CAMBODIA) CO.,LTD.                                   51.00%       
 Hyundai Logistics Co., Ltd.                                             HYUNDAI LOGISTICS (GERMANY) GMBH                                        100.00%      
 Hyundai Logistics Co., Ltd.                                             HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                 100.00%      
 HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                 HYUNDAI LOGISTICS (HK) INT'L LIMITED                                    51.00%       
 HYUNDAI LOGISTICS UK LIMITED                                            HYUNDAI LOGISTICS (ITALY) SRL                                           100.00%      
 Hyundai Logistics Co., Ltd.                                             HYUNDAI LOGISTICS (MALAYSIA) SDN. BHD.                                  100.00%      
 HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                    HYUNDAI LOGISTICS (NETHERLANDS) B.V.                                    51.00%       
 HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                 HYUNDAI LOGISTICS (SINGAPORE) PTE. LTD.                                 51.00%       
 Hyundai Logistics Co., Ltd.                                             HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                    100.00%      
 HYUNDAI LOGISTICS (AMERICA), INC.                                       HYUNDAI LOGISTICS (USA), INC.                                           70.60%       
 HYUNDAI LOGISTICS (HK) HOLDINGS LIMITED                                 HYUNDAI LOGISTICS INDIA PRIVATE LIMITED                                 51.00%       
 HYUNDAI LOGISTICS (UK) HOLDINGS LTD.                                    HYUNDAI LOGISTICS UK LIMITED                                            51.00%       
 Hyundai Logistics Co., Ltd.                                             HYUNDAI VINATRANS LOGISTICS CO.,LTD                                     51.00%       
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            INTERNATIONAL BUSINESS CENTER COMPANY LIMITED                           50.00%       
 Lotte Europe Holdings B.V.                                              JSC Lotte RUS                                                           100.00%      
 Lotteria Co., Ltd.                                                      KKD Lotte Holdings                                                      100.00%      
 Lotte Chemical Corporation                                              Kor-Uz Gas Chemical Investment Ltd.                                     49.00%       
 Lotte Hotel & Retail Vietnam Pte. Ltd.                                  Kotobuki Holding (HK) Ltd                                               100.00%      
 Lotte Holdings Co., Ltd.                                                L&S(Thailand) Co.,Ltd.                                                  49.00%       
 LOTTE Chemical USA Corporation                                          LACC, LLC                                                               90.00%       
 Lotte Food Holding Co.,Ltd.                                             LH Foods Co.,Ltd                                                        50.00%       
 Lotte Shopping Holdings  (Hong Kong) Co., Limited                       LHSC Limited                                                            51.10%       
 Lotte Co., Ltd.                                                         Lotte (MALAYSIA) Sdn., Bhd.                                             100.00%      
 LOTTE ADVANCED MATERIALS CO., LTD.                                      Lotte Advanced Materials (Thailand) Co., Ltd.                           49.30%       
 LOTTE ADVANCED MATERIALS CO., LTD.                                      Lotte Advanced Materials Dongguan Co., Ltd.                             100.00%      
 LOTTE ADVANCED MATERIALS CO., LTD.                                      LOTTE ADVANCED MATERIALS EUROPE GMBH                                    100.00%      
 LOTTE ADVANCED MATERIALS CO., LTD.                                      Lotte Advanced Materials hungary LLC.                                   100.00%      
 LOTTE ADVANCED MATERIALS CO., LTD.                                      Lotte Advanced Materials Japan Co., Ltd.                                100.00%      
 LOTTE ADVANCED MATERIALS USA, INC.,                                     Lotte Advanced Materials Mexico S.A. de C.V.                            100.00%      
 LOTTE ADVANCED MATERIALS CO., LTD.                                      Lotte Advanced Materials Shanghai Co., Ltd.                             100.00%      
 LOTTE ADVANCED MATERIALS CO., LTD.                                      Lotte Advanced Materials Tianjin Co., Ltd.                              100.00%      
 LOTTE ADVANCED MATERIALS CO., LTD.                                      LOTTE ADVANCED MATERIALS USA, INC.,                                     100.00%      
 Lotte International Co., Ltd.                                           Lotte Agro Holdings B.V.                                                100.00%      
 Lotte Agro Holdings B.V.                                                Lotte Agro RUS LLC                                                      99.00%       
 Lotte Asset Development Co., Ltd.                                       LOTTE ASSET MANAGEMENT (HK) LIMITED                                     100.00%      
 Lotte Chilsung Beverage Co., Ltd.                                       LOTTE BEVERAGE AMERICA CORP.                                            100.00%      
 Lotte Chilsung Beverage Co., Ltd.                                       LOTTE Beverage Holdings (Singapore) Pte. Ltd.                           100.00%      
 Lotte Chemical Corporation                                              Lotte Chemical Alabama Corporation                                      100.00%      
 LOTTE Chemical USA Corporation                                          LOTTE Chemical Louisiana, LLC                                           100.00%      
 Lotte Chemical Corporation                                              Lotte Chemical Pakistan Limited                                         75.00%       
 Lotte Chemical Corporation                                              LOTTE CHEMICAL POLAND SP. ZO.O                                          100.00%      
 Lotte Chemical Titan (M) Sdn. Bhd.                                      Lotte Chemical Singapore Pte. Ltd.                                      100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Lotte Chemical Titan (M) Sdn. Bhd.                                      100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Lotte Chemical Titan Capital (L) Limited                                100.00%      
 Lotte Chemical Corporation                                              Lotte Chemical Titan Holding Sdn. Bhd.                                  100.00%      
 PT. Lotte Chemical Titan Tbk                                            Lotte Chemical Titan International Limited                              100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Lotte Chemical Titan International Sdn. Bhd.                            100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Lotte Chemical Titan Trading Sdn. Bhd.                                  100.00%      
 Lotte Chemical Corporation                                              Lotte Chemical UK Limited                                               100.00%      
 Lotte Chemical Corporation                                              LOTTE Chemical USA Corporation                                          60.00%       
 Lotte Confectionary Co., Ltd.                                           Lotte Confectionery (S.E.A.) Pte Ltd                                    100.00%      
 Lotte Confectionary Co., Ltd.                                           Lotte Confectionery Holdings (Europe) B.V.                              51.00%       
 Lotte Co., Ltd.                                                         Lotte Confectionery Pilippinas Corp.                                    100.00%      
 Lotte Europe Holdings B.V.                                              Lotte Confectionery RUS                                                 100.00%      
 Lotte Information Technology Co., Ltd.                                  Lotte Data Communication Company Limited Vietnam                        100.00%      
 Woori Home Shopping                                                     Lotte DatViet Homeshopping Co.,Ltd.                                     90.00%       
 Lotte Holdings Co., Ltd.                                                Lotte Do Brasil Alimentos, Ltda.                                        99.00%       
 LOTTE DUTY FREE SINGAPORE PTE. LTD.                                     Lotte Duty Free (Thailand) Co., Ltd                                     49.00%       
 LOTTE HOTEL HOLDINGS USA CO., LTD.                                      Lotte Duty Free Guam, LLC                                               0.00%        
 HOTEL LOTTE Holdings HK Limited                                         Lotte Duty Free Hong Kong Ltd.                                          100.00%      
 LOTTE DUTY FREE SINGAPORE PTE. LTD.                                     Lotte Duty Free Japan Co., Ltd.                                         80.00%       
 LOTTE DUTY FREE SINGAPORE PTE. LTD.                                     Lotte Duty Free Kansai Co., Ltd.                                        100.00%      
 Hotel Lotte Co., Ltd.                                                   LOTTE DUTY FREE SINGAPORE PTE. LTD.                                     100.00%      
 Lotte Engineering & Construction Co., Ltd.                              Lotte E&C Malaysia Sdn. Bhd.                                            100.00%      
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            LOTTE E-COMMERCE VIETNAM CO., LTD                                       100.00%      
 Lotte Engineering & Construction Co., Ltd.                              Lotte Engineering and Construction India Pvt. Ltd.                      100.00%      
 Lotte Engineering & Construction Co., Ltd.                              Lotte Engineering and Construction Vietnam Co., Ltd                     100.00%      
 Lotte Engineering & Construction Co., Ltd.                              Lotte Engineering Construction Mongolia LLC                             100.00%      
 Hotel Lotte Co., Ltd.                                                   Lotte Europe Holdings B.V.                                              37.90%       
 Lotte Europe Holdings B.V.                                              Lotte Europe Investment                                                 100.00%      
 Lotte fine Chemical Corporation                                         LOTTE Fine Chemical Europe GmbH                                         100.00%      
 Lotte fine Chemical Corporation                                         LOTTE Fine Chemical Trading(Shanghai) Co., Ltd.                         100.00%      
 Lotte Confectionary Co., Ltd.                                           Lotte Food Holding Co.,Ltd.                                             100.00%      
 Lotte Co., Ltd.                                                         Lotte Four Seas Ltd.(MKG)                                               70.00%       
 Lotte Properties(Shenyang) Ltd.                                         Lotte Glory Properties(Shenyang) Ltd.                                   100.00%      
 Hotel Lotte Co., Ltd.                                                   Lotte Hotel & Retail Vietnam Pte. Ltd.                                  40.00%       
 LOTTE HOTEL HOLDINGS USA CO., LTD.                                      Lotte Hotel Guam LLC.                                                   100.00%      
 Hotel Lotte Co., Ltd.                                                   LOTTE HOTEL HOLDINGS USA CO., LTD.                                      100.00%      
 LOTTE HOTEL HOLDINGS USA CO., LTD.                                      LOTTE HOTEL NEW YORK PALACE, LLC                                        100.00%      
 Lotte Europe Holdings B.V.                                              Lotte Hotel Saint Petersburg LLC                                        100.00%      
 LOTTE DUTY FREE SINGAPORE PTE. LTD.                                     LOTTE HOTEL VIETNAM COMPANY LIMITED                                     100.00%      
 Lotte Confectionary Co., Ltd.                                           Lotte India Co., Ltd.                                                   98.60%       
 Lotte International Co., Ltd.                                           Lotte International America Corp.                                       100.00%      
 Lotte International Co., Ltd.                                           LOTTE INTERNATIONAL OCEANIA PTY LTD.                                    100.00%      
 Lotte Confectionary Co., Ltd.                                           Lotte Kolson(Private) Limited                                           96.50%       
 Lotte Asset Development Co., Ltd.                                       Lotte Land (Singapore) Private Limited                                  100.00%      
 Lotte Chilsung Beverage Co., Ltd.                                       LOTTE LIQUOR JAPAN CO.,LTD                                              100.00%      
 Lotte (Beijing) Logistics Co., Ltd.                                     LOTTE Logistics (HongKong) Co., Limited                                 90.00%       
 Lotte Logistics Corporation                                             Lotte Logistics Kazakhstan Co. Ltd                                      100.00%      
 Lotte Logistics Corporation                                             Lotte Logistics Vietnam CO.,LTD                                         100.00%      
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            Lotte Mart C&C India Private Limited                                    100.00%      
 Lotte Shopping Holdings  (Hong Kong) Co., Limited                       Lotte Mart China Co., Ltd.                                              100.00%      
 Lotte Card Co., Ltd.                                                    Lotte Members Vietnam Co.,Ltd.                                          100.00%      
 LOTTE Beverage Holdings (Singapore) Pte. Ltd.                           LOTTE MGS Beverage (Myanmar) Co., Ltd.                                  76.60%       
 Lotte Holdings Co., Ltd.                                                Lotte Netherlands Holdings B.V.                                         100.00%      
 Nugget Food Corporation                                                 Lotte Philippines Co.,Inc.                                              49.00%       
 Lotte Shopping Co., Ltd.                                                LOTTE PROPERTIES (CHENGDU) HK LIMITED                                   73.50%       
 Lotte Asset Development Co., Ltd.                                       LOTTE PROPERTIES (HANOI) SINGAPORE PTE. LTD.                            100.00%      
 Lotte Asset Development Co., Ltd.                                       Lotte Properties(Shenyang) Ltd.                                         37.20%       
 Lotte Rental Co., Ltd.                                                  LOTTE Rent-A-Car (Thailand) Co.,Ltd.                                    49.00%       
 Lotte Rental Co., Ltd.                                                  Lotte Rental (Vietnam) Company Limited                                  100.00%      
 Lotte Shopping Holdings  (Hong Kong) Co., Limited                       Lotte Shopping Business Management (Hong Kong) Limited                  100.00%      
 Lotte Shopping Co., Ltd.                                                Lotte Shopping Holdings  (Hong Kong) Co., Limited                       100.00%      
 Lotte Shopping Co., Ltd.                                                Lotte Shopping Holdings (Singapore)Pte., Ltd                            100.00%      
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            Lotte Shopping India Pvt.,Ltd                                           90.00%       
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            Lotte Shopping Plaza Vietnam Co.,Ltd.                                   100.00%      
 Lotte Europe Holdings B.V.                                              Lotte Shopping RUS Ltd.                                                 100.00%      
 Lotte Holdings Co., Ltd.                                                Lotte Singapore pte. Ltd.                                               100.00%      
 Lotte Confectionary Co., Ltd.                                           Lotte Taiwan Co.,Ltd.                                                   50.00%       
 Lotte Co., Ltd.                                                         Lotte U.S.A. INC.                                                       100.00%      
 Lotte Chemical Corporation                                              LOTTE UBE SYNTHETIC RUBBER SDN. BHD.                                    40.00%       
 Lotte Co., Ltd.                                                         Lotte Vietnam Co., Ltd.                                                 60.50%       
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            LOTTE VIETNAM SHOPPING JOINT STOCK COMPANY                              99.99%       
 Lotte International Co., Ltd.                                           Lotte Vina International Co., Ltd.                                      100.00%      
 Lotte Netherlands Holdings B.V.                                         Lotte Wedel sp.zo.o                                                     100.00%      
 Lotte Shopping Co., Ltd.                                                LotteCinema Vietnam Co., Ltd.                                           90.00%       
 Hyundai Information Technology Co., Ltd.                                Lotte-HPT High Tech. Vietnam Shareholding Company                       50.00%       
 Lucky Pai Ltd.                                                          Lucky Pai (Shanghai) Information Technology Co.,Ltd.                    100.00%      
 Lucky Pai Ltd.                                                          Lucky Pai (Shanghai) Network Technology Co.,Ltd.                        100.00%      
 Lucky Pai Ltd.                                                          Lucky Pai (Shanghai) Trading Co.,Ltd.                                   100.00%      
 LHSC Limited                                                            Lucky Pai Ltd.                                                          100.00%      
 Lucky Pai Ltd.                                                          Lucky Pai(Shanghai) Commercial Co.,Ltd.                                 100.00%      
 Lotte Chilsung Beverage Co., Ltd.                                       Pepsi-Cola Products Philippines, Inc.                                   38.90%       
 Lotte Wedel sp.zo.o                                                     Pijalnie Czekolady Wedel Sp.zo.o.                                       100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  PT LOTTE CHEMICAL INDONESIA                                             99.67%       
 Chemical Brothers Limited                                               PT LOTTE CHEMICAL TITAN NUSANTARA                                       99.90%       
 Lotte Confectionary Co., Ltd.                                           PT LOTTE RND CENTER INDONESIA                                           33.30%       
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            PT LOTTE SHOPPING AVENUE INDONESIA                                      99.00%       
 Daehong Communications Co., Ltd.                                        PT. Daehong Communications Indonesia                                    99.00%       
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            PT. INDO LOTTE MAKMUR                                                   50.00%       
 Lotte Capital Co., Ltd.                                                 PT. LOTTE CAPITAL INDONESIA                                             78.10%       
 Lotte Chemical Titan International Sdn. Bhd.                            PT. Lotte Chemical Titan Tbk                                            90.40%       
 Lotte Logistics Corporation                                             PT. Lotte Logistics Indonesia                                           99.00%       
 Lotte Aluminium Co., Ltd.                                               PT. Lotte Packaging                                                     99.40%       
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            PT. Lotte Shopping Indonesia                                            80.00%       
 LOTTE DUTY FREE SINGAPORE PTE. LTD.                                     PT. SJ Indonesia                                                        90.00%       
 PT. Lotte Chemical Titan Tbk                                            PT. Titan Trading                                                       99.60%       
 Lotte Information Technology Co., Ltd.                                  PT.Lotte Data Communication Company Indonesia                           99.80%       
 Lotte Co., Ltd.                                                         PT.Lotte Indonesia                                                      98.30%       
 Lotte Shopping Holdings (Singapore)Pte., Ltd                            PT.Lotte Mart Indonesia                                                 99.00%       
 Lotte Card Co., Ltd.                                                    PT.LOTTE MEMBERS INDONESIA                                              99.00%       
 Lotte Co., Ltd.                                                         PT.Lotte Trade and Distribution                                         60.00%       
 Lotteria Co., Ltd.                                                      PT.Lotteria Indonesia                                                   99.00%       
 Lotte Confectionary Co., Ltd.                                           Rakhat JSC                                                              92.40%       
 Rakhat JSC                                                              Rakhat TR                                                               99.90%       
 Rakhat JSC                                                              Rakhat Trading House LLP                                                100.00%      
 Rakhat JSC                                                              Rakhat-Aktau LLP                                                        100.00%      
 Rakhat JSC                                                              Rakhat-Aktobe LLP                                                       100.00%      
 Rakhat JSC                                                              Rakhat-Astana LLP                                                       100.00%      
 Rakhat JSC                                                              Rakhat-Karaganda LLP                                                    100.00%      
 Rakhat JSC                                                              Rakhat-Oral LLP                                                         100.00%      
 Rakhat JSC                                                              Rakhat-Shymkent LLP                                                     100.00%      
 Rakhat JSC                                                              Rakhat-Shymkent Trading House LLP                                       100.00%      
 Rakhat JSC                                                              Rakhat-Taldykorgan LLP                                                  100.00%      
 Hyundai Logistics Co., Ltd.                                             Shaghai Hyundai Asia Shipping International Freight Forwarding Co.Ltd.  66.00%       
 Lucky Pai (Shanghai) Information Technology Co.,Ltd.                    Shanghai Jijie Commercial Trading Co.,Ltd.                              100.00%      
 Lucky Pai (Shanghai) Information Technology Co.,Ltd.                    Shanghai Jirong Commercial Trading Co.,Ltd.                             100.00%      
 Lucky Pai (Shanghai) Information Technology Co.,Ltd.                    Shanghai Wenxuan Co., Ltd.                                              100.00%      
 Chemical Brothers Limited                                               South Wealth Finance Limited                                            100.00%      
 Lotte Shopping Holdings  (Hong Kong) Co., Limited                       Swift Harvest Ltd.                                                      100.00%      
 Lotte Co., Ltd.                                                         Thai Lotte Co., Ltd.                                                    98.20%       
 Thai Okashiland Holdings Ltd.                                           Thai Okashi Land Ltd.                                                   50.90%       
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Titan Chemicals International Limited                                   100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Titan Ethylene Glycol Sdn. Bhd.                                         100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Titan Leasing Ltd.                                                      100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Titan Petrochemicals Sdn. Bhd.                                          100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Titan Styrene Sdn. Bhd.                                                 100.00%      
 Lotte Chemical Titan Trading Sdn. Bhd.                                  Titan Trading Corp. Limited                                             100.00%      
 Lotte Chemical Titan Holding Sdn. Bhd.                                  Titan Vinyl Sdn. Bhd.                                                   100.00%      
 Lotteria Co., Ltd.                                                      Vietnam Lotteria. Ltd.                                                  99.70%       
 Swift Harvest Ltd.                                                      Jiaxing Lotte Mart Co., Ltd.                                            100.00%      
 Swift Harvest Ltd.                                                      Gang So Lotte Ma Teuk Sang Eop Ltd.                                     100.00%      
 Nam Tong Hui Hang Chi Eop Ltd.                                          Gang Eon Si Gwang Won Chi Eop Ltd.                                      100.00%      
 Gang So Lotte Ma Teuk Sang Eop Ltd.                                     Gyedong Lotte Mart Co., Ltd.                                            100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Jilin Lotte Mart Co., Ltd.                                              100.00%      
 Lotte Logistics Corporation                                             Lotte (Beijing) Logistics Co., Ltd.                                     100.00%      
 LH Foods Co.,Ltd                                                        Lotte Food (Shanghai) Ltd.                                              90.00%       
 Lotte Shopping Co., Ltd.                                                Lotte Corporation Management (China) Ltd.                               70.00%       
 Lotte Confectionary Co., Ltd.                                           Lotte Food (Shanghai) Ltd.                                              47.20%       
 Lotte Food Holding Co.,Ltd.                                             Lotte Corporation Management (China) Ltd.                               100.00%      
 Lotte Confectionary Co., Ltd.                                           Lotte Food (Chengdu) Ltd.                                               90.00%       
 Lotte Card Co., Ltd.                                                    LOTTE Members China                                                     100.00%      
 KKD Lotte Holdings                                                      Lotte GaYeJaChanEum Management (Shanghai) Ltd.                          100.00%      
 Lotte Construction (Beijing) Ltd.                                       Lotte Construction (Shenyang) Ltd.                                      100.00%      
 Lotte Chemical Corporation                                              Lotte GongJeongSoRyo (Gaheung) Ltd.                                     100.00%      
 Lotte Chemical Corporation                                              Lotte GongJeongSoRyo (Shenyang) Ltd.                                    100.00%      
 Lotte Chemical Corporation                                              Lotte GongJeongSoRyo (Hapbi) Ltd.                                       50.00%       
 Lotte Confectionary Co., Ltd.                                           Lotte NaengEum (Shandong) Ltd.                                          65.00%       
 Lotteria Co., Ltd.                                                      Lotte LiChanEum Management (Beijing) Ltd.                               100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Lotte MaTeuk Trade (Sungdo) Ltd.                                        100.00%      
 Gang So Lotte Ma Teuk Sang Eop Ltd.                                     Lotte MaTeuk Mart (Soju) Ltd.                                           100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Lotte MaTeuk Trade (Chungkyung) Ltd.                                    100.00%      
 Lotte Properties(Shenyang) Ltd.                                         Lotte Logistics Management (Shenyang) Ltd.                              100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Lotte Department Store (Chengdu) Ltd.                                   100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Lotte Department Store (Shenyang) Ltd.                                  100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Lotte Department Store (Tianjin) Ltd.                                   100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Lotte Trade Management (Uihae) Ltd.                                     100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Lotte Trade Management (Tianjin) Ltd.                                   100.00%      
 Lotte Engineering & Construction Co., Ltd.                              Lotte Sung Construction (Beijing) Ltd.                                  100.00%      
 Lotte Information Technology Co., Ltd.                                  Lotte New Technology (Beijing) Ltd.                                     100.00%      
 Lotte New Technology (Beijing) Ltd.                                     Lotte New Technology (Shenyang) Ltd.                                    100.00%      
 Swift Harvest Ltd.                                                      Lotte Younghang Mart (Shanghai) Ltd.                                    100.00%      
 Lotte Chilsung Beverage Co., Ltd.                                       Lotte Oh Deo Ri Beverage Ltd.                                           100.00%      
 HOTEL LOTTE Holdings HK Limited                                         Lotte Yu Rak (Shenyang) Ltd.                                            100.00%      
 HOTEL LOTTE Holdings HK Limited                                         Lotte Duty Free Beijing Co., Ltd.                                       100.00%      
 Lotte Capital Co., Ltd.                                                 Lotte Yoong Ja JoIm (China) Ltd.                                        100.00%      
 Lotte Chilsung Beverage Co., Ltd.                                       Lotte Changbaek Beverage Ltd.                                           100.00%      
 Lotte Chilsung Beverage Co., Ltd.                                       Lotte JuEop (Beijing) Ltd.                                              100.00%      
 LOTTE PROPERTIES (CHENGDU) HK LIMITED                                   Lotte Jisan (Chengdu) Ltd.                                              100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Lotte Mart Co., Ltd.                                                    100.00%      
 Lotte Aluminium Co., Ltd.                                               Lotte PoJang (Beijing) Ltd.                                             40.00%       
 LOTTE ASSET MANAGEMENT (HK) LIMITED                                     Lotte HangMokJaSoon (Shanghai) Ltd.                                     100.00%      
 Lotte Chemical Corporation                                              Lotte Chemical (Gaheung) Ltd.                                           100.00%      
 Nam Tong Gang Poong Chi Eop Ltd.                                        Nam Tong Gang Poong Changjeo Ltd.                                       100.00%      
 Hong Fung Ltd.                                                          Nam Tong Gang Poong Chi Eop Ltd.                                        100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Nam Tong Geum Woo Chi Eop Ltd.                                          100.00%      
 Gang So Lotte Ma Teuk Sang Eop Ltd.                                     Nam Tong Deok Shin Chi Eop Ltd.                                         100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Nam Tong Mi Rim Chi Eop Ltd.                                            100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Nam Tong Bu Mu Chi Eop Ltd.                                             100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Nam Tong Bu Hwa Chi Eop Ltd.                                            100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Nam Tong Bun Dal Chi Eop Ltd.                                           100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Nam Tong Yo Dong Chi Eop Ltd.                                           100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Nam Tong Chun Hwi Chi Eop Ltd.                                          100.00%      
 Lotte Shopping Holdings (Hong Kong), Ltd                                Nam Tong Hwi Hang Chi Eop Ltd.                                          100.00%      
 Daehong Communications Co., Ltd.                                        Daehong Advertisement (Shanghai) Ltd.                                   100.00%      
 Lotte Holdings Co., Ltd.                                                Lotte Corporation                                                       100.00%      
 Lotte Strategic Investment Co., Ltd.                                    Lotte Real Estate Corporation                                           100.00%      
 Lotte Holdings Co., Ltd.                                                Lotte International Co., Ltd.                                           100.00%      
 Lotte Chemical Corporation                                              Samkang Lotte Huagong Ltd.                                              50.00%       
 Shaghai Hyundai Asia Shipping International Freight Forwarding Co.Ltd.  Shanghai Hyundai ARyun Logistics Ltd.                                   100.00%      
 Gang So Lotte Ma Teuk Sang Eop Ltd.                                     Seoju Lotte Mart Co., Ltd.                                              100.00%      
 Lotte Shopping Co., Ltd.                                                Shim Yang Shim Lak Jeon Young Investment Management Ltd.                49.00% 

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