Export Development Canada (EDC) has issued a $200-million loan to Lotte Shopping, marking the federal agency’s first loan transaction in South Korea.

The deal is also the first between EDC and Lotte Shopping and follows a Market Leadership Partnership program MOU signed in September that could lead to as much as US$500 million in support over three years. The new financing package includes a $150-million EDC guarantee arranged with Lotte’s lending partner Sumitomo Mitsui Banking Corporation, which is providing an additional $50-million direct facility. The funds will support Lotte’s capital spending and operations as the chain expands across its department stores, hypermarkets, supermarkets and e-commerce businesses.

The retail giant operates 902 stores globally, with most located in South Korea. Lotte also has locations in Vietnam and Indonesia.

Structured in Korean won, the loan is EDC’s first local-currency facility in South Korea, aimed at helping partners manage foreign-exchange exposure. EDC said the transaction underscores its long-term commitment to deepening commercial relationships in the Indo-Pacific, particularly since opening its South Korea office in October 2023.

“This milestone marks an exciting new chapter for EDC in South Korea,” said Alison Nankivell, EDC’s president and CEO. “Through our partnership with Lotte Shopping, we’ve moved quickly from signing the MLP agreement to completing our first transaction. That’s a clear example of what strong collaboration can achieve. This pioneering deal reflects EDC’s tailored approach to meeting local market needs and highlights our commitment to strengthening partnerships and supporting Canadian companies as they expand their businesses in dynamic markets like South Korea.

“Partnering with an industry leader like Lotte Shopping, with its regional network and expertise, we look forward to opening new pathways for Canadian exporters, from agri-food to advanced technology, into key markets like South Korea, Indonesia, Vietnam and other key ASEAN markets as we work together to strengthen Canada’s trade connections across the Indo-Pacific.”

International Trade Minister Maninder Sidhu said the arrangement aligns with Canada’s push to broaden its commercial footprint in the Indo-Pacific.

“Last month, I travelled across the Indo-Pacific with Prime Minister [Mark] Carney, including a visit to South Korea, where I saw firsthand the incredible opportunities the country and the region hold for Canada and for our Canadian exporters,” said Sidhu. “This partnership between EDC and Lotte Shopping highlights Canada’s focus on diversifying trade by collaborating with strategic partners like South Korea. We will continue to strengthen partnerships across the Indo-Pacific region to advance Canada’s economic ties, create opportunities for Canadian businesses and secure our long-term prosperity.”

As part of the broader MLP framework, EDC and Lotte Shopping will exchange market intelligence and pursue collaboration between senior executives to explore investments, joint-ventures and partnerships in both countries.

“We are honoured and excited by our partnership with EDC, which will help our efforts in creating the No. 1 shopping destination in Korea with Lotte Shopping,” said Samuel Sanghyun Kim, vice chairman and retail group CEO for Lotte Group. “As the first step, we will leverage the financial support from EDC to facilitate our capital projects to further improve the shopping experience in our retail operations.

“We also look forward to working with EDC to bring the best of the best products from Canada to our customers in Korea, as well as work together to identify various opportunities to further strengthen our partnership through Lotte Shopping projects globally, including in Vietnam, Indonesia and Canada.”

South Korea is Canada’s seventh-largest merchandise trading partner, with two-way trade reaching $24.5 billion in 2024 and growing opportunities in agri-food, seafood, cleantech and high-tech sectors.

Photo: Lotte Shopping