As the wave of Korean pop culture, often referred to as the Hallyu, sweeps across the globe, Korean companies are expanding their businesses on the back of the growing popularity in countries like Indonesia.
A subsidiary of South Korean retailer Lotte Group, Lotteria Co Ltd, in cooperation with Indonesia’s PT Mondial Risjad Fastana, will open more Lotteria fast food franchises in addition to three retail outlets in Kelapa Gading in North Jakarta; Fatmawati in South Jakarta and Bintaro in Tangerang.
The two companies have formed PT Lotteria Indonesia, which is prepared to spend US$20 million on the fast food chain and expected to open up to 50 retail outlets by 2015.
“We are planning to open 15 outlets in Jakarta this year,” PT Mondial Risjad Fastana president director Handi Irawan said on Wednesday.
He said that with the Hallyu still lingering in Indonesia, the phenomenon could help boost the popularity of the restaurant, which serves meals from organic foods. He also expects Lotteria to become the top three fast food restaurants in Indonesia by 2020.
“In Korea itself, Lotteria already has 1,000 outlets and has become the number one Korean-brand fast food restaurant,” Handi said.
The main challenge in Indonesia, he said, was to discover strategic locations for the restaurants and maintain quality service for consumers.
Lotte Group entered the Indonesian market in 2008 after acquiring 19 outlets around the country from Dutch wholesaler Makro, which it rapidly developed into Lotte Mart Wholesales.
There are currently 24 Lotte Mart stores and the group plans to open up to 100 more by 2018.
Lotte Group is currently the largest retail company in South Korea, with operations in nine countries including Japan, Vietnam, China, Russia and Indonesia.
First launched in 1979, it is the fifth-largest conglomerate in South Korea after Samsung, Hyundai Motor, SK and LG.
Lotte’s businesses cover retail, food and drink, tourism, petrochemicals, construction and manufacturing.
In the retail industry, the group manages Lotte Department Store, Lotte Mart, Lotte Super, Lotte Duty Free Store and Lotte Home Shopping.