Lotte Rental's Vision for 2028

Lotte Rental has unveiled an ambitious plan to increase its sales and operating profit (OP) by 1.5x and 2.0x respectively by 2028, compared to 2023 levels. This growth strategy is driven by enhancing the profitability of its existing businesses and expanding into new ventures.

Strategies to Boost Profitability

The company aims to improve its car rental business by reducing accident costs and increasing customer retention. Additionally, Lotte Rental plans to expand the number of cars used monthly for new business segments such as used car rentals and commercial car leases.

Entry into the B2C Used Car Market

Lotte Rental is set to launch a direct-operated online B2C used car platform in October, targeting a 10% market share and sales of W2.3tn by 2028.

Global Expansion Plans

Internationally, the company is focusing on expanding its B2C long-term and short-term car rental businesses in Vietnam and plans to launch car rental services in popular travel destinations, starting with Okinawa, Japan.

Enhanced Shareholder Return Policy

Lotte Rental's three-year shareholder return plan includes using over 40% of net profit for shareholder returns, with 30% for dividend payouts and 10% for treasury stock buyback/cancellation. Although the buyback/cancellation is modest this year at W10bn, the plan is expected to scale up from 2025, supported by a full-fledged profit expansion cycle.