[2020 Corporate World Young Power] Choi Tae-won and Shin Dong-bin, Now the 'Eldest Brothers,' Also Join the Race

[Asia Economy Reporter Park So-yeon] SK Group Chairman Chey Tae-won and Lotte Group Chairman Shin Dong-bin were classified as the youngest among the top 10 conglomerate heads just a few years ago. However, with the active generational shift among major group leaders over the past 2-3 years, they are now regarded as the 'elders' leading South Korea's industrial sector. Consequently, their responsibilities are heavier than ever. They must spearhead the discovery of growth industries to break free from the stagnation following the period of rapid growth, and at times, as senior figures in the business community, they need to offer candid criticism to the government and political circles. In an uncertain domestic and international environment, they are expected to be a strong pillar for the business community and pioneers of the Fourth Industrial Revolution.

Known as a 'social value evangelist,' Chairman Chey Tae-won plans to accelerate business restructuring both domestically and internationally this year. Notably, significant changes are expected in the petroleum-based energy affiliates. SK Innovation is strengthening its investment in electric vehicle batteries. Since the petrochemical business involves environmental pollution such as carbon dioxide emissions, SK is focusing on businesses related to eco-friendly electric vehicle batteries that align with the social values it pursues. Recently, SK Innovation succeeded in securing battery orders to be mounted on Hyundai Motor Group's first electric vehicle platform, further raising growth expectations. SKC, a chemical company, has also transformed into an electric vehicle materials company by acquiring KCFT, the world's number one copper foil supplier for automotive batteries.

Having escaped judicial risks, Lotte Group Chairman Shin Dong-bin is expected to speed up the formation of 'New Lotte' this year. To this end, Shin replaced 22 CEOs in the 2020 regular executive reshuffle. The retail and chemical affiliates, which faced poor performance, also underwent organizational restructuring. Lotte Holdings, the group's 'control tower,' was reorganized into a 'two-top system.' Vice Chairman Song Yong-deok, who previously headed the Hotel & Service division, moved to become CEO of Lotte Holdings and now leads it alongside Vice Chairman Hwang Gak-gyu. According to Lotte, this structure allows more focus on the group's future businesses and global business strategies. Lotte Chemical is also expected to strengthen efforts to diversify its business and restructure non-core operations.

Although not an owner, POSCO Chairman Choi Jeong-woo, who plays a significant role among the top 10 conglomerate heads, is also focusing on discovering new growth engines for the centennial company. The plan is to expand the secondary battery business to a global market share of 20% and sales of 17 trillion won by 2030. To this end, POSCO is expected to shift focus from steel to nurturing and investing in new business sectors such as secondary batteries this year. In September last year, POSCO merged POSCO Chemtech and POSCO EMS, which supply cathode and anode materials respectively in the energy materials sector including lithium secondary batteries, to reorganize as 'POSCO Chemical' to strengthen its electric vehicle battery materials business. After completing the cathode material plant in Zhejiang Province, China, POSCO recently established a secondary battery materials research center to accelerate material development.

A business community official said, "In 2020, business leaders will embark on full-scale business restructuring," adding, "Flexible adjustment to a business structure suited to future demand will be a challenging task."

This content was produced with the assistance of AI translation services.