Lotte Card Apologizes to Lotte Group Over Brand Confusion Following Data Breach Sanctions

Lotte Card has issued a formal apology to the Lotte Group following recent sanctions for a customer data breach. The company, which suffered a 1.5-month business suspension and a 5 billion won fine from the Financial Services Commission, acknowledged the confusion caused by its use of the 'Lotte' brand name.

Although Lotte Card operates independently under the management of MBK Partners since its separation from the Lotte Group in 2019, the shared name has led to public association and potential reputational damage for the wider conglomerate. In its letter, signed by its CEO, Lotte Card expressed regret for any inconvenience caused to customers of Lotte Holdings and its affiliates.

"We apologize for the inconvenience caused to the customers of Lotte Holdings and its affiliates due to this measure," the letter stated. "We will focus on customer service to ensure that customers using Lotte affiliates do not experience difficulties during the partial business suspension period."

The incident stems from a data leak last year, which exposed the information of 2.97 million customers. Lotte Group had previously expressed concerns about brand value erosion and declining customer trust following the data breach, urging Lotte Card to take responsibility.

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We apologize for the inconvenience caused to the customers of Lotte Holdings and its affiliates due to this measure. We will focus on customer service to ensure that customers using Lotte affiliates do not experience difficulties during the partial business suspension period.