Lotte Group's corporate logo / Korea Times file

Lotte Corp., the holding company of South Korea's retail giant Lotte Group, said Tuesday it aims to raise its shareholder return rate to over 35 percent by 2026, while considering the cancellation of some treasury stocks.

The value-up plan comes amid market rumors that Lotte may be in a liquidity crisis driven by its ailing chemical affiliate.

"The company will further enhance shareholder value by increasing cash dividends and considering the cancellation of treasury stocks by 2026," it said in a regulatory filing.

Lotte's shareholder return rate has been at about 30 percent.

Lotte Chemical Corp. swung to a net loss of 681.36 billion won ($488 million) in the January-September period from a net profit of 114.77 billion won a year earlier due to a slump in the petrochemical industry.

But Lotte Chemical has enough liquidity to pay back the principals of its corporate bonds and is working to improve its cash flow by adjusting its investment plans and selling non-core assets, Lotte Group said last week.

Refuting concerns of a liquidity crisis, the group said its total assets, including deposits, reached 139 trillion won as of last month.

On top of its four mainstay businesses ranging from foods, distribution, chemicals and infrastructure, the company is developing four new growth drivers under the value-up plan.

They are contract development and manufacturing organization (CDMO), EV charging infrastructure, rechargeable battery materials and metaverse platform businesses.

Pharmaceutical firms outsource drug manufacturing to CDMOs and a metaverse platform refers to an interactive three-dimensional space where users can virtually interact, work, shop and engage in various activities. (Yonhap)