Lotte Chairman Shin Dong-bin Returns to Korea After 58 Days in Japan, Under Self-Quarantine... Plans to Resume On-Site Management Next Week

Chairman Shin Dong-bin Complies with 2-Week Self-Quarantine Guidelines
Resumes On-Site Management from the 18th
Establishes 'After Corona' Measures

Shin Dong-bin, Chairman of Lotte Group

[Asia Economy Reporter Lim Hye-sun] Shin Dong-bin, chairman of Lotte Group, returned to Korea 58 days after departing for Japan. Currently under self-quarantine, Chairman Shin is confirmed to be closely communicating with the group’s top executives and leading the establishment of post-COVID-19 countermeasures.

According to the business community on the 13th, Chairman Shin has been following the government’s two-week self-quarantine guidelines at his home since returning on the 4th. A senior Lotte Group official stated, "Due to the self-quarantine guidelines, he has not been able to come to the field yet," adding, "The management situation has rapidly changed over the past two months due to COVID-19, and there will be significant changes in the group’s business strategy."

Chairman Shin left for Japan on March 7, shortly after holding the 49th-day memorial service for his father, Shin Kyuk-ho, Honorary Chairman of Lotte Group. Shin risked the threat of the novel coronavirus (COVID-19) to board a flight to Japan in order to assume the position of chairman of Lotte Holdings Japan. He was appointed chairman at the Lotte Holdings Japan board meeting on March 18 and officially took office on April 1.

As COVID-19 spread worldwide, Chairman Shin’s movements were restricted for nearly two months. Since becoming chairman of Lotte Group Korea in 2011, this is the first time he has stayed in Japan for such a long period. While in Japan, he reportedly managed urgent issues such as COVID-19 crisis response measures as chairman of Lotte Holdings Japan. It is also said that he prepared contingency plans to enable proactive and swift responses to sudden adverse events, anticipating difficulties in returning to Japan once back in Korea.

He led the group remotely from Korea. Chairman Shin chaired weekly Tuesday meetings via video conference. Reports on affiliate issues and irregular meetings were also conducted online. He prioritized attending the weekly meetings even if it meant postponing other schedules. The last eight meetings were all held virtually.

At an emergency management video conference held on March 24, Chairman Shin told the management, "The COVID-19 crisis will bring tremendous changes," and urged them to "review the group’s business strategy in preparation for the post-COVID-19 era." As the COVID-19 situation prolonged and the group faced difficulties, Chairman Shin decided to donate half of his salary from April to June back to the company. Group executives and outside directors also voluntarily returned 20% of their salaries for three months.

Chairman Shin plans to resume on-site management from the 19th, after completing his two-week self-quarantine. The management pace of Lotte Group is accelerating. To overcome the COVID-19 crisis, Lotte is also working to internalize the Winning Spirit among its employees. At the first regular meeting of the Corporate Culture Committee held on the 12th, attention was focused on cultivating the Winning Spirit among employees as a way to overcome difficult circumstances and respond to unprecedented changes. The Winning Spirit refers to the will of all employees to empathize with the company’s core values and maximize their capabilities to achieve the best results. Earlier this year, Chairman Shin emphasized that a Winning Culture must be established within the organization to proactively respond to change.

There are also many challenges Chairman Shin must address. A significant portion of his management efforts will likely be devoted to normalizing the group’s two main pillars, the chemical sector (Lotte Chemical) and the distribution sector (Lotte Shopping), which face high uncertainty. Accordingly, he is expected to actively engage in crisis management through emergency management and bold business restructuring. Chairman Shin has instructed the group’s key executives to prepare for the post-COVID-19 era. Establishing a post-COVID-19 response strategy is a core task, and he has ordered the creation of new business strategies accordingly.

In line with this, Lotte Holdings and Lotte Human Resources Development Institute published an internal book titled "Before and After COVID-19" on the 10th to prepare for the post-COVID-19 era, distributing it to all group CEOs and planning executives. The book identifies key themes driving change after COVID-19, including deglobalization, contactless (untact) trends, and a return to Keynesianism. It is expected to serve as an opportunity for companies to lay the foundation for new growth. A Lotte Group official emphasized, "This could be a decisive moment remembered for decades," adding, "In a society dominated by anxiety, it is important for companies to project an image of safety and protection."

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