What: Lotte Group's retail unit, Lotte Shopping, has been selected as a de-facto strategic investor to acquire Hanssem, the country's largest furniture company, along with local private equity fund (PEF) IMM PE.

Why it is important: The retailer expects to create synergy with its department stores and Hanssem at a time when expenses for home improvement, home goods and furniture rose in the midst of the pandemic.

"Taking over Hanssem will help Lotte allocate space for furniture stores in our retail channels as well as create synergy at the group level in collaboration with Hi-Mart and Lotte Engineering and Construction," a Lotte Shopping official said.

Lotte to acquire Hanssem with IMM PE