Seoul: Lotte Group, one of South Korea's largest conglomerates, announced on Wednesday that it will use Lotte World Tower in Seoul as collateral for corporate bonds of its financially troubled chemical unit. This move is intended to alleviate market concerns about a potential liquidity crisis facing the company.According to Yonhap News Agency, the group disclosed in a regulatory filing that the 123-story skyscraper, valued at 6 trillion won (approximately US$4.31 billion), would be used as additional collateral for bonds issued by Lotte Chemical Corp. A meeting with bondholders is scheduled for December 19 to further discuss the implications of this decision.Lotte Group emphasized that this decision reflects its strategic commitment to maintaining Lotte Chemical's financial stability. By leveraging Lotte World Tower as collateral, the group aims to reassure the market and demonstrate that Lotte Chemical does not face a liquidity issue. The group stated that this measure underscores its determination to re solve the crisis rumors and take responsibility for the current financial challenges.Despite the liquidity concerns, Lotte Chemical reportedly holds 4 trillion won in readily available deposits, suggesting it has sufficient liquidity to cover the principal and interest of its bonds. The concerns have arisen due to the chemical firm's decreased profitability during an industry downturn, with the company reporting an operating loss of 413.6 billion won in the third quarter of 2024, in contrast to a profit of 42.6 billion won the previous year.Lotte World Tower, owned by Lotte Property and Development, is the tallest building in South Korea and is expected to play a crucial role in stabilizing Lotte Chemical's financial situation.
- October 12, 2026
