Lotte Group, Korea’s fifth-largest conglomerate, said Thursday that reports of Lotte Healthcare selling Theragen Health, in which it invested 25 billion won ($17 million), remain "unconfirmed." 

Lotte Healthcare is scheduled to hold an extraordinary general meeting next Tuesday to discuss its liquidation. A Lotte Group official confirmed that further details will be provided after the meeting or within one month.

The potential sale of Theragen Health is said to be part of Lotte Healthcare's liquidation process, which is expected to be completed by March 2025. Industry sources report that Lotte Group has already transferred Lotte Healthcare employees to other affiliates in two phases, in September and December.

While a Lotte Group official confirmed that two employees left, another Lotte Group official said the company had been "re-evaluating its business" but declined to confirm whether the transfers were linked to the liquidation.

“Regarding the liquidation in March, we will only be able to discuss specifics, such as the schedule and plan, after the shareholders' meeting,” the second official said. He did not provide further details on the liquidation. Lotte Healthcare officials could not be reached for comment.

The clarification follows reports suggesting that Lotte Healthcare, once seen as a key growth driver, is shutting down. 

Initially based on the 27th floor of Lotte World Tower, the company has since downsized to a shared office near Seolleung Station in southern Seoul. A Lotte Group official indicated that the move reflected the company’s financial struggles, reporting just 800 million won in sales and an operating loss of 22.9 billion won last year. The downsizing was described as a cost-cutting measure due to lack of revenue.

“It is true that we have been re-evaluating our business, which led to the decision to close the operations of the company or relocate the office,” the Lotte Group official added.

Founded in March 2022 with a 70 billion won investment from Lotte Group, Lotte Healthcare aimed to lead both domestic and global healthcare markets. The company planned to launch a personalized health management platform, Cazzle, and establish offline centers for global expansion.

Cazzle was launched in September 2022, offering personalized health insights and shopping features based on health checkup data, surveys, and genetic testing analyzed using AI algorithms. The platform aimed to attract one million subscribers by late 2023. However, Lotte Healthcare recently announced that Cazzle’s app service would end next Thursday, with customer support continuing only until Dec. 31.