NSP NEWS

(Seoul=NSP NEWS) = Minority shareholder action platform ACT launches full-scale shareholder action against Lotte Shopping.

ACT's decision to rally Lotte Shopping's minority shareholders is driven by the company's poor share price and performance. As of February 3, 2025, Lotte Shopping's stock price is around KRW 52,000, down 40% from the end of 2022 and 62% from the end of 2020, and its price-to-earnings ratio(PBR), a key value indicator, is 0.16, the lowest among all listed companies.

In early January, ACT sent a shareholder letter to Lotte Shopping’s board of directors, blaming the company's underperforming stock price on excessive use of debt, burdensome interest costs, and lack of corporate governance.

As a follow-up to the shareholder letter, ACT is preparing to submit a shareholder proposal to the AGM in March.

ACT is preparing a number of proposals to improve governance to increase transparency and ensure that shareholder voices are better heard by the board and management. ACT plans to finalize and announce the agenda early this week.