“Shopping discounts with just one share” ... Lotte Shopping launches shareholder benefits program

[Financial News] Lotte Shopping is setting out to diversify its shareholder-return approach by offering shareholders shopping discounts and points rewards.
According to industry sources on the 13th, Lotte Shopping will launch the L.HONORS CLUB shareholder benefits program in November, becoming the first major company in South Korea to do so. The aim is to diversify its dividend-centered approach to shareholder returns and offer shopping benefits that shareholders can enjoy in their everyday lives.
The company says that while shareholder benefits programs are operated mainly by some small and midsize consumer goods companies in South Korea, they have become a common shareholder-return policy in Japan, where around 40% of all listed companies use them. Drawing on such overseas examples, Lotte Shopping plans to offer benefits that shareholders can enjoy in their everyday lives and strengthen trust with them.
L.HONORS CLUB means “honored shareholders who contribute to the company’s growth.” Based on Lotte Group’s integrated L.POINT membership program, it offers tailored benefits, including points and discount coupons, according to the size and duration of shareholdings.
Shareholders who own at least one share of Lotte Shopping will first receive a welcome gift of discount coupons worth 10% to 20% when they sign up. The coupons can be used at department stores, hypermarkets and supermarkets, and through e-commerce, subject to set limits. The program also offers points tied to spending: 1%, 2% and 3% on purchases of 1 million, 2 million and 3 million won, respectively.
On the program’s launch date, November 1, the first benefits will be provided to shareholders as of the end of September this year. Shareholders as of the end of this year will be eligible for benefits starting February 1 next year, with benefits scheduled to be provided every three months thereafter.
Additional benefits will be offered to high-volume, long-term shareholders who own at least 1,000 shares of Lotte Shopping and have held them for at least one year. These include access to department store lounges and valet and parking passes, as well as discount and free-shipping coupons for use at hypermarkets, supermarkets and through e-commerce.
Lim Jae-cheol, head of finance at Lotte Shopping, said, “We are introducing this shareholder benefits program as the first major company in South Korea to do so, in order to provide shareholders with tangible benefits and enhance shareholder value. We will do our utmost to build long-term trust with shareholders and enhance corporate value.”

[email protected] Jang Yu-ha Reporter