Lotte Shopping faced a significant penalty amounting to approximately 570 million won from the Fair Trade Commission due to violations of the Large-Scale Distribution Business Act. The commission's investigation revealed that from August 2021 through August 2024, Lotte Shopping improperly returned nearly 20,000 products, including baby formula and electronics, to nine suppliers without valid reasons. The total value of these returns reached over 22 million won, which was determined to be unjustified by the commission, as the required documentation from suppliers was missing.

Additionally, Lotte Shopping delayed payments for goods purchased from 80 suppliers from January 2021 until June 2024, exceeding the legal payment deadline by a minimum of one day to a maximum of 386 days, without paying the corresponding delayed interest of about 34 million won. The commission stressed that compliance with timely payment regulations is essential for maintaining fair trade practices in the market.

Moreover, the investigation revealed that Lotte Shopping had allowed employees of supplying firms to work at its business locations without the necessary pre-agreements, breaking labor laws concerning employee dispatch. Contracts were also not provided in a timely manner to suppliers, with delays ranging from one day to 201 days, further violating trust and transparency norms in supplier relations. These infractions highlight the need for strict enforcement of fair trading practices in Korea's retail sector.