Lotte Group has stated that rumors about a liquidity crisis are unfounded and that they are considering legal action.
Lotte Corporation, Lotte Chemical, and Lotte Shopping announced today (the 18th) that “the rumors currently being circulated about Lotte Group’s liquidity crisis are completely unfounded.”
On the KOSPI today, Lotte Corporation closed at 20,550 won, down 6.59% from the previous trading day. It also hit a 52-week low during the session, dropping 8.86% to 20,050 won.
Lotte Chemical fell by 10.22% to 65,900 won, while Lotte Shopping ended the day down 6.6% at 58,000 won.
It is believed that the decline in the stocks of Lotte’s affiliates, in hitting new lows, was influenced by rumors of a liquidity crisis spreading in the securities market and online communities.
Previously, on the 16th, a video titled ‘Lotte Group Risk of Disbandment’ was posted on YouTube, followed by rumors that Lotte would declare a moratorium (payment deferral) early next month.
The content also included predictions of more than 50% staff reduction, focusing on distribution affiliates.
Lotte Group stated that “although Lotte Chemical and duty-free shops are being managed under emergency management due to poor market conditions and some affiliates have accepted voluntary retirement for workforce efficiency, the liquidity crisis is entirely false.” They added, “We are considering legal action against the originators and spreaders of these rumors.”
[Photo Source: Yonhap News]
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