Lotte GFR dropped KAPPA after 3 years — never found its footing in Korea

In 2021, Lotte GFR — the fashion subsidiary of Lotte Shopping — acquired exclusive Korean distribution rights for KAPPA, the Italian sportswear brand known for its 'Omini' logo of a man and woman leaning back-to-back. Lotte GFR relaunched KAPPA in February 2022 with a target of ₩100 billion in annual revenue by 2025, investing in rebranding, retail locations, and marketing.

By April 2024, Lotte GFR terminated the contract early — the original term ran to 2028 — and began winding down KAPPA's Korean operations. The online mall had already closed in March 2024. KAPPA recorded ₩11.7 billion in impairment losses in 2022 alone. Lotte GFR itself had posted operating losses every year since its founding in 2018, accumulating deficits exceeding ₩80 billion.

Lotte GFR's brand portfolio shrank from 12 imported brands at its peak to just 5 after the KAPPA exit. Parent Lotte Shopping had injected ₩30 billion (May 2022) and ₩50 billion (November 2023) via rights offerings and recognized a ₩71.2 billion impairment on its Lotte GFR stake. Lotte GFR cited poor sales and KAPPA's inability to compete against established sportswear brands as reasons for the exit, saying it would focus on the French sports brand K-Way instead.