Lotte Group Chairman Shin Dong-bin conducted a sweeping reshuffle, replacing 22 CEOs of group subsidiaries on Dec. 19.

The group established a “two-top post players’ system” in which Vice Chairman Hwang Kak-kyu and Vice Chairman Song Yong-deok are charged with exploring future growth engines and improving management.

The reshuffling of the group’s two major umbrella business units - shopping and chemicals - has strengthened the authority of each business unit chief.

The latest reshuffle may be construed as Lotte Group Chairman Shin’s determination to cope with sagging business performances.

Lotte Corp., the holding company of Lotte Group, and about 50 group subsidiaries, held board meeting on Dec. 19 and carried out a regular reshuffle of group executives for the year 2020. Lotte is the nation’s fifth largest conglomerate.

Vice Chairman Song, head of the group’s hotel and service unit, has been transferred to CEO of Lotte Corp. Vice Chairman Song’s appointment to Lotte Corp. has shifted into a three-CEO structure - Chairman Shin, Vice Chairman Hwang Kak-kyu, and Vice Chairman Song.

Vice Chairman Song is responsible for personnel, labor affairs and management reform while Vice Chairman Hwang, and he is charged with manpower development and reinforcing operation efficiency to focus on strengthening the group’s capabilities.

Vice Chairman Hwang is tasked with exploring future businesses, global business strategies, finance and communication.

Key words of the group’s reshuffle may be summed up as “responsibility,” “reform,” and “future.” The reshuffle may reflect Chairman Shin’s determination to hold executives responsible for sagging business performances, resuscitate the group through restructuring and mobilize all resources possible to explore future growth engines.

Noteworthy in the personnel change is the replacement of the distribution business unit chief the restructuring of Lotte Shopping. In the past, each CEO oversaw department store, mart, super, e-Commerce and Lobs businesses under the umbrella of Lotte Shopping, but they are now restructured into one integrated corporate entity, headed by Lotte Department Store CEO Kang Hee-tae, who is promoted to vice chairman in the reshuffle.

The integrated entity supervises investment strategies and personnel management of all Lotte Shopping subsidiaries. Each subsidiary shift into a business division. Vice Chairman Lee Won-joon, who had served as head of the distribution business unit since 2017, has stepped down.

Lotte Corp. President Lee Bong-chul was appointed to head the hotel & service business unit. He is now charged with a job of listing Hotel Lotte, the group’s long-cherished task.

Among the newly appointed executives are President Park Hyun-chul in charge of management reform at Lotte Corp. and Lotte Home Shopping President & CEO Lee Wan-shin.

Lotte Chemical, struggling with sagging business performances, caused by industry uncertainties, has undergone restructuring and personnel changes.

Lotte Chemical is to be merged with its whole owned subsidiary Lotte Advanced Materials on next Jan. 1.

A consolidated Lotte Chemical is changing into a structure with two business division heads: basic materials division chief and advanced materials division head under the control of CEO of the merged entity.

President Kim Kyo-hyun, who took office as chemical business unit chief last year, heads the merged company and concurrently serves as CEO of the consolidated Lotte Chemical.

Senior Executive Vice President Lim Byung-yeon is retained as basic materials division chief while Executive Vice President Lee Young-joon was promoted to advanced materials division head.