[비즈한국] It has been confirmed that Lotte Asset Development, a real estate development company under Lotte Group, recently filed a trademark application for the name 'DUNDUN' for use in sectors such as department stores and large discount stores. Since transferring most of its business divisions, excluding development, to affiliates in 2019 and effectively remaining in a state of suspended operation, interest has gathered around the backdrop of this new trademark application.
According to KIPRIS, the patent information network of the Korean Intellectual Property Office, Lotte Asset Development filed trademark applications for the Korean name '던던' and the English name 'DUNDUN' on the 20th of last month, intending to use them in businesses such as department stores and large discount stores. A total of 4 applications were filed for the Korean '던던' and 4 for the English 'DUNDUN', categorized into Class 35 (large discount stores, department stores, online shopping malls, etc.), Class 36 (commercial building leasing, etc.), Class 37 (building repair and remodeling, etc.), Class 41 (organizing cultural/artistic events, theme parks, etc.), and Class 43 (food and beverage preparation, etc.).
A trademark right is an exclusive right to use a mark—a sign that distinguishes one's goods from others—on designated goods or services. According to trademark law, anyone who is currently using or intends to use a trademark in the future can register it. However, if a registrant does not use the trademark for the designated goods or services for more than three years without a valid reason, the registration may be canceled.
Lotte Asset Development is a real estate development affiliate of Lotte Group. Established in December 2001 under the name KB Surim, it initially operated as a construction materials sales business before being acquired by Lotte Group in July 2007, subsequently growing into a comprehensive real estate company engaged in development and shopping mall operations. Its development projects primarily involved large-scale real estate projects at the group level, such as Lotte Mall Gimpo Airport, Lotte Center Hanoi in Vietnam, and Lotte Buyeo Resort. As of the end of last year, the company's shares were held 89% by Lotte Corporation004990 and 11% by Hotel Lotte.
Currently, Lotte Asset Development is effectively in a state of suspended operation. Its consolidated revenue for last year was around 600 million KRW, and it recorded an operating loss of 3.8 billion KRW and a net loss of 5.1 billion KRW. Following the fallout from the suspension of the Shenyang Lotte Town project in China, the company fell into a state of total capital impairment in 2019, leading to the transfer of most business divisions—excluding development—to its affiliates. Shopping mall operations were transferred to Lotte Shopping023530, asset management services and shared offices to Lotte Property & Development, and residential operations to Lotte E&C. Since then, Lotte Asset Development has not produced any significant business results.
Regarding the trademark application, a Lotte Group official stated, "Lotte Asset Development's current business and workforce are in a downsized state," adding, "It appears they registered the name in advance as a candidate for future business projects."