[비즈한국] Lotte Tour Development Chairman Kim Ki-byung (88) has gifted a 7.67% stake in Lotte Tour Development to his second son, Kim Han-jun (55), the company's CEO. Notably, no shares were gifted to his eldest son, Kim Han-sung (57), the CEO of Dongwha Duty Free. Some in the business sector are analyzing this as a signal that Kim Han-sung will inherit Dongwha Duty Free, while Kim Han-jun will inherit Lotte Tour Development.
According to the Financial Supervisory Service's electronic disclosure, Chairman Kim Ki-byung gifted a 7.67% stake in Lotte Tour Development to his second son, CEO Kim Han-jun, on the 16th. As a result, Chairman Kim's stake decreased from 22.72% to 15.05%, while CEO Kim Han-jun's stake increased from 1.26% to 8.93%. Chairman Kim Ki-byung is the uncle-in-law of Lotte Group Chairman Shin Dong-bin (71), having married Shin Jung-hee (80), the younger sister of the late Lotte Group founder Shin Kyuk-ho, and has served as CEO of Lotte Tour Development since 1978.
What stands out is that Chairman Kim did not gift any Lotte Tour Development shares to his eldest son, CEO Kim Han-sung. Kim Han-sung holds a 2.66% stake in the company, which is 6.27 percentage points (p) less than his younger brother.
In light of this, some industry insiders are suggesting that the brothers are each set to inherit different entities: Kim Han-sung for Dongwha Duty Free and Kim Han-jun for Lotte Tour Development. For years, the two have focused their management efforts on their respective firms, keeping their domains distinct. While it is known that the owner family and related parties hold a 100% stake in Dongwha Duty Free, the exact ownership structure has not been disclosed.
Currently, Dongwha Duty Free and Lotte Tour Development face significantly different situations. Before CEO Kim Han-sung took office, Dongwha Duty Free recorded 354.9 billion won in revenue in 2016, but that figure dropped to a mere 15.2 billion won in 2024. This is attributed to major domestic retailers entering the duty-free market and the negative impact of China's Hallyu restrictions. Furthermore, as of the end of 2024, Dongwha Duty Free was in a state of complete capital impairment, with total capital at negative (-) 83.8 billion won.
At one point, there was even talk of potential closure. The original duty-free license for Dongwha Duty Free was set to expire on December 24 of last year. However, the company decided to continue operations and obtained a new license last year. Since all renewal opportunities for the original license had been exhausted, acquiring a new one was necessary for continued business. As a result, Dongwha Duty Free now holds the right to operate its downtown duty-free store for the next 10 years.
While Dongwha Duty Free’s performance has been poor, not all forecasts are negative. According to the Korea Tourism Organization, the number of foreign tourists visiting Korea increased from 15,098,766 between January and November 2024 to 17,418,270 during the same period in 2025. Considering its prime location near Gwanghwamun Station in the heart of Seoul, its prospects are not entirely bleak. The company plans to expand its store from the second floor to include the first floor. However, most stock market analysts believe it has a long way to go to return to its prime performance seen in the mid-2010s.
In contrast, Lotte Tour Development is on an upward trend. Revenue increased from 183.7 billion won in 2022 to 313.7 billion won in 2023, and to 471.5 billion won in 2024, with 466.3 billion won recorded in the first three quarters of 2025 alone. At this rate, 2025 revenue is likely to surpass that of 2024. CEO Kim Han-jun also maintains a strong presence, having led the construction of the 'Jeju Dream Tower,' which opened in 2020.
Market outlooks are also favorable. Im Soo-jin, a researcher at Kiwoom Securities, analyzed Lotte Tour Development, stating, "With the hosting of a baccarat tournament in January and the positive effects of increased flight capacity, we expect a rebound in drop amounts (chips purchased by casino visitors) and per-capita indicators." She added, "Amidst the weak exchange rate, the indirect benefits of Korea-Japan relations, and the recovery of Chinese tourism demand, the Jeju region is seeing faster growth in demand compared to the mainland, as Chinese tourists account for approximately 80% of its foreign visitors."
Of course, it is not certain that Kim Han-jun will inherit Lotte Tour Development. The possibility that Chairman Kim Ki-byung might gift his remaining 15.05% stake to Kim Han-sung cannot be ruled out. However, the prevailing view is that since the eldest son has long focused on managing Dongwha Duty Free, his sudden involvement in managing Lotte Tour Development is unlikely.
Lotte Tour Development stated that this stock transfer is unrelated to succession. A company representative said, "This share gift is intended to strengthen responsible management of the Jeju Dream Tower integrated resort so that Lotte Tour Development can take a leap forward as a comprehensive leisure company," reiterating that it has nothing to do with succession. The representative added, "We plan to continue responsible management by prioritizing the enhancement of shareholder value and corporate growth."