Lotte Healthcare said it has granted stock options to nine executives including CEO Lee Hoon-ki and Executive General Manager Woo Woong-jo.

The decision aimed to reinforce the company's position as one of Lotte Group's new growth engines and to further enhance corporate value in the mid-to-long-term by securing competitiveness through performance-based compensation.

The stock option grant targets employees who have made or are capable of making significant contributions to the establishment and management of the company, as well as those involved in technological innovation.

Lotte Healthcare intends to extend the stock option program to all its employees in the future, but with differential payments based on a comprehensive evaluation of individual capabilities and business contributions, it said.

“Creating a compensation system that grows with the company can help us retain key employees and ultimately secure corporate competitiveness,” a company official said.

At present, the company is facing accusations of technology theft from Algocare, a Korean healthcare startup renowned for winning the CES Innovation Award for three consecutive years.

In January, Algocare made the initial accusation that Lotte Healthcare had stolen its business concept for an AI-backed nutrient dispenser and introduced a copy product.

According to Algocare CEO Joung Ji-won, Lotte Healthcare obtained information about Algocare's "Nutrition Engine," a cartridge-type nutrient dispenser, as well as business strategy information, during a 2021 meeting with Algocare.

The allegation is currently being investigated by the Ministry of SMEs and Startups, Fair Trade Commission (FTC), and Korean Intellectual Property Office (KIPO).

According to an Algocare official, the company plans to complete the investigation by the end of April by submitting all the necessary documents needed for the investigation.

“We are also preparing to file criminal charges against Lotte Healthcare, but will do so after the FTC’s investigation results come out,” the Algocare official told Korea Biomedical Review.