Lotte Global Logistics Targets Battery and Hydrogen Sectors in Bold Growth Strategy
Lotte Global Logistics Targets Battery and Hydrogen Sectors in Bold Growth Strategy
Lotte Global Logistics has unveiled ambitious plans to enter the secondary battery and hydrogen markets as part of its strategy to secure new growth engines. This strategic pivot was announced during the company’s IPO press conference in Seoul’s Yeouido district on April 21, 2025.
As South Korea’s logistics landscape continues to evolve, this established player is positioning itself to capitalize on emerging green energy supply chains while preparing for its public debut on the Korean stock market.
The company has secured comprehensive logistics capabilities covering the entire secondary battery value chain, from raw material transport to collection and recycling of used batteries.
Lotte Global Logistics emphasized its specialized expertise in handling the unique logistics requirements for battery materials and components
The company plans to leverage existing infrastructure to create an integrated logistics network specifically designed for the secondary battery industry
This strategic move aligns with South Korea’s push to dominate the global battery market, creating synergies with major manufacturers in the sector
Hydrogen Business Model Development
In partnership with affiliate companies, Lotte Global Logistics is developing business models focused on ammonia-based maritime hydrogen transport.
The company is exploring opportunities in the emerging hydrogen economy, particularly in marine transportation of ammonia as a hydrogen carrier
This initiative involves collaboration with other Lotte Group companies to create an integrated supply chain solution
The strategic timing coincides with increasing global investment in hydrogen infrastructure, positioning the company at the forefront of this emerging market
Company Background and Operational Scale
Formed through a 2019 merger between companies established in 1988 and 1996, Lotte Global Logistics operates an extensive network including Asia’s largest “Mega Hub Terminal.”
The company operates 19 terminals across its network, including the massive Central Region “Mega Hub Terminal” – the largest of its kind in Asia
Their facilities can process up to 2.1 million packages daily, demonstrating significant operational capacity
The 2019 merger between Hyundai Logistics (established 1988) and Lotte Logistics (established 1996) created a comprehensive logistics powerhouse with deep industry experience
IPO Details and Market Positioning
The company plans to offer 14.94 million shares with a target price range of 11,500 to 13,500 won (approximately $8.20 to $9.63 at current exchange rates).
The total offering consists of 14.94 million shares with a price band of 11,500-13,500 won per share
Demand forecasting will run from April 24-30, with public subscription scheduled for May 12-13
At the high end of the price range, the company would raise approximately 201.7 billion won ($143.8 million)
Lotte Global Logistics is positioning itself as a growth stock with specialized logistics capabilities
Service Innovation and Expansion
The company plans to significantly expand its “Promise Delivery” service, which allows customers to specify preferred delivery times.
The “Promise Delivery” service will expand from 28 client companies in 2025 to 178 by 2027
A new “Luggage-less” service for travelers will be introduced, targeting the growing tourism sector
These service innovations demonstrate the company’s commitment to customer-centric solutions beyond traditional logistics operations
Global Operations and Strategic Expansion
With operations in 11 countries, the company is building a logistics hub in Eastern Europe centered in Hungary and recently established a new entity in Mexico.
The company currently maintains operations across 11 countries, highlighting its global reach
Hungary serves as the focal point for its Eastern European logistics hub development strategy
A new subsidiary was established in Mexico last year, targeting opportunities in the North American market
This international footprint positions the company to support global supply chains for both traditional and emerging industries
Lotte Global Logistics CEO Kang Byung-goo emphasized that even after going public, the company will “strengthen differentiated customer service and specialized logistics capabilities to establish itself as a top growth stock.” As South Korea’s logistics sector continues its evolution, Lotte Global Logistics appears determined to position itself at the intersection of traditional delivery services and emerging green energy supply chains.