Lotte Duty Free has recently entered into a business agreement with the Korea Commission for Corporate Partnership’s Mutual Growth Committee for the 2024 ESG Support Project for Suppliers. This partnership aims to continue supporting small and medium-sized suppliers (SMEs) by providing a cooperation fund of KRW50m (US$35,700) through the agreement.
Last year, Lotte Duty Free participated in this project for the first time and has now committed to contributing to the growth of SMEs by providing customized indicators for each partner company in accordance with the SME ESG standard guidelines of the Compliance Committee. This will help strengthen the capabilities of small and medium-sized partners by providing support for ESG education, diagnosis, and consulting.
To achieve this, Lotte Duty Free plans to provide online training to all partners and select 10 companies for additional offline training and on-site inspection. Upon completion of the consultation, an ESG Excellent Small Business Confirmation will be issued in the name of the Mutual Growth Committee to companies that demonstrate excellent compliance with ESG indicators. These certified partner companies will also receive incentives such as preferential interest rates with banks (Shinhan, KB Kookmin, IBK Enterprises and BNK Gyeongnam), preferential treatment for overseas expansion support projects, and environmental and energy consulting and technical support from the Korea Institute of Energy Research.
Lotte Duty Free is committed to achieving sustainable growth with its partners and has been actively supporting small and medium-sized businesses since 2019. The retailer has created a fund of KRW50bn (US$35.8m) to support loan interest rates for these businesses. In addition, last July, Lotte Duty Free signed a business agreement with the Small and Medium Business Distribution Center to support the entry, promotion, and marketing of small and medium-sized businesses into its shops. As a result, eight of these businesses operated a pop-up store for a month at the Jeju Airport branch last month, and four companies with excellent sales were selected as official stores and began operations.
Lotte Duty Free CEO Kim Joo-nam expressed his enthusiasm for this partnership, stating, “We are delighted to continue our efforts in strengthening the competitiveness of our small and medium-sized partners and implementing ESG management this year. Lotte Duty Free will continue to prioritize coexistence as a core value and strive to grow together with our various partners.”
In conclusion, Lotte Duty Free’s partnership with the Korea Commission for Corporate Partnership’s Mutual Growth Committee for the 2024 ESG Support Project for Suppliers is a testament to its commitment to supporting the growth of small and medium-sized businesses. Through this partnership, the retailer aims to promote sustainable growth and coexistence with its partners, while also contributing to the overall development of the industry.