Lotte Group Chairman Shin Dong-bin revealed management tasks for next 12 months at the Value Creation Meeting (VCM) for the first half of this year: Establishing challenging goals, innovation of business portfolio and establishing global strategies.
The VCM, a kind of a meeting of CEOs of the group’s subsidiaries, took place at Lotte World Tower in Jamsil, Seoul, on Jan. 9.
“Given the national economy and population outlooks, exploration of overseas markets is a significant goal for the group’s future growth, and we have to recognize that now is the last chance to change the crisis into an opportunity of great innovation,” Chairman Shin said.
Among some 80 people on hand at the meeting were Lotte Group Chairman Shin, CEO of Lotte Corp., heads of the business groups and CEOs of subsidiaries.
Senior Executive Vice President Shin Yu-yeol, head of the Future Growth Office at Lotte Corp. and Lotte Chmn. Shin’s son, was also present at the meeting after returning his visit to CES 2025 in Las Vegas.
Senior Executive Vice President Shin Yu-yeol, head of the Future Growth Office at Lotte Corp. tours pavilions at CES 2025 at Las Vegas on Jan. 7. (Photos: Lotte Group)
Participants shared the view that a gloomy atmosphere surrounded the meeting.
Last year, Lotte Corp., Lotte Chemical and Lotte Duty-free entered an emergency management mode, and the group’s major subsidiaries suffered from poor business performances.
In November 2024, the business group conducted the largest-ever executive reshuffle.
Chairman Shin said, “Last year was the hardest-ever year in the group’s history, and even though diverse options were carried out like the disposal of tangible assets and asset revaluation, fundamental solutions are needed to raise profitability by strengthening the competitiveness of the businesses,” he said.
Chairman Shin did not mince words. Given the refined words he normally expresses, he stated: “A crisis is a day-to-day business, the basic cause of hardships we face is the declining competitiveness of our core businesses, not the outside environment, so unless we innovate, we cannot survive,” he said.
Chmn. Shin Calls for Intensified Effort to Restore Core Businesses Competitiveness
Lotte Group Chairman stressed the need to ramp up reform this year to satisfy market expectations and establishing a foundation to overcome the current crisis and achieve sustainable growth by restoring the competitiveness of core businesses as soon as possible.
In his New Year’s message, Chmn. Shin said, “Our group has to pursue changes by upgrading business portfolio and raise the speed of decision-making and execution based on organizational slimming.”
“This year will see harder economic situation like expanded uncertainties and prolonged recession of the domestic market, and unless we pursue innovation, we could face a greater crisis,” Chmn. Shin said.
He forecast that market uncertainties will rise due to protectionist trade and a commerce policy shift amid persisting global geopolitical tensions, on top of a prolonged recession of the domestic market, and acceleration of demographic structure changes, caused by aging.
Chmn. Shim emphasized the need to solidify groundwork to make a leap forward through constitutional reform, and establishing preemptive financial strategies and raising fiscal soundness.
He called for a review of unnecessary duties and matters hindering efficiency in order to raise each individuals’ work productivity and devoting themselves to laying a groundwork to restore the company’s leading position.
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