SEOUL, KOREA - Lotte Group is pushing to create a private equity fund worth 500 billion won jointly with the National Pension Service and Korea Development Bank. The group hopes to use the money to take over companies in overseas locations as part of its globalization bid.

According to investment banking sources on February 3, Lotte Group is in talks with the National Pension Service and Korea Development Bank to form a corporate partnership fund for overseas acquisitions. The fund, proposed originally by the state-run pension management company, is a one-to-one matching fund in which private corporations can participate for overseas investment.

 

Once the private equity fund is formed as planned, it is likely Lotte Group may look for companies to invest in such regions as China, Southeast Asia, and Russia. For years, the group has been interested in mergers and acquisitions of retail operators in China and Southeast Asia. For example, its retail arm Lotte Mart has opened 73 out of 103 stores in China in the form of outright mergers. Last year, the group took over Legend Hotel Saigon in Vietnam.