Lotte books KRW18.8bn impairment loss on Versalis elastomers JV

Seoul – Lotte Chemical has recognised an impairment loss of KRW18.8 billion (€11.5 million) on its investment in Lotte Versalis Elastomers (LVE), a synthetic rubber joint venture with Italy’s Versalis.

According to a 14 Aug semi-annual filing with the Financial Supervisory Service, LVE reported revenue of KRW182.4 billion in the first half of 2025, with operating income of KRW1.0 billion.

But the JV posted a net loss of KRW4.1 billion, up from KRW14.4 billion reported in the first half of 2024. The venture has remained in the red in recent years.

The parent group contributed KRW25.0 billion in January for “joint venture operating funds,” and its board approved in June a further capital increase in the JV.

Lotte said the contributions were calculated “according to the shareholders’ ownership ratios.”

Lotte holds '50.00% plus one' share in LVE, but classifies it as a joint venture, noting that it does not have control under the joint arrangement.

At the group level, Lotte Chemical’s profitability was hit by weaker petrochemical demand and oversupply. Earnings (EBITDA) for the first half fell 39.5% year-on-year to KRW217.6 billion, with margins down from 3.6% to 2.4%.