The 50/50 joint venture will be named Lotte-Nestle Korea, with Lee Sang-ryul appointed as the JV's first CEO.
Nestle Korea CEO Graeme Toft said the joint venture will sharpen Nestle's competitive edge in the soluble coffee market and other product categories in Korea.
"Combining our expertise in the food business with Lotte's strength in retail and consumer goods will give us a strong platform to deliver growth and value," Toft told The Korea Times.