Lotte Shopping (023530.KS) is introducing a membership program that gives discount coupons and loyalty points to shareholders who own as little as a single share.
The retailer said on the 13th that it will launch the shareholder benefits program, called L.HONORS CLUB, next month, making it the first South Korean conglomerate to do so. The company said the aim is to broaden shareholder returns beyond dividends into benefits that shareholders can experience in daily life, strengthening ties and trust with investors.
Shareholder perk programs have been adopted by only a handful of smaller consumer goods companies in South Korea, while in Japan about 40% of listed companies run them. Lotte Shopping will give all shareholders holding one share or more a welcome gift of coupons worth 10% to 20% off purchases, usable up to set limits at its department stores, hypermarkets and supermarkets, and e-commerce platforms. The program also awards points based on spending.
When the program takes effect on Nov. 1, the first round of benefits will go to shareholders of record as of the end of September this year. Benefits will then be distributed every three months, with shareholders of record as of the end of 2026 receiving theirs from Feb. 1 next year. Shareholders who have held 1,000 shares or more — roughly the top 1% by number of shares held — for more than a year will receive premium benefits. Those include department store lounge access and valet and parking vouchers, along with discount and free-shipping coupons for its hypermarkets, supermarkets and e-commerce platforms.
"We have become the first major South Korean company to run a shareholder benefits program in order to provide tangible benefits to our shareholders and enhance shareholder value," said Lim Jae-chul, head of Lotte Shopping's finance division. "We will do our utmost to build long-term relationships of trust with shareholders and raise corporate value."