Shin Dong-bin "Focusing on New Businesses Next Year" Accelerates Personnel Changes to Reorganize the Team

[Asia Economy Reporter Lim Hye-seon] Shin Dong-bin, Chairman of Lotte Group, who returned to Korea after more than two months in Japan, is setting a 'New Lotte' strategy. As the impact of the novel coronavirus infection (COVID-19) prolongs and the industrial landscape rapidly changes, Chairman Shin is expected to focus on readjusting businesses and creating opportunities through discovering new businesses in line with the 'post-COVID era.'

According to Lotte Group on the 21st, Chairman Shin presided over a weekly meeting yesterday afternoon and instructed the preparation of business status by each affiliate and next year's business plans. This meeting was the first face-to-face meeting in two months, attended by about 10 people including the heads of four Business Units (BUs), the CEO of Lotte Holdings, and each department head. Starting next week, Chairman Shin will review business plans and strategies to prepare for the post-COVID era together with the BU heads of each division. This year, since the BU heads will report directly to Chairman Shin without going through the holding company, there is a tense atmosphere internally. In particular, as Chairman Shin has consistently instructed the discovery of new growth engines to respond to the 'post-COVID era' this year, it is understood that he will closely examine the progress related to this. Before leaving for Japan, Chairman Shin instructed, "Each affiliate should consider how to leap forward as a 'leading company' and how to maintain it."

A Lotte official said, "No new messages or management instructions came out during the face-to-face meeting, but it proceeded in a consistently subdued atmosphere," adding, "This year was difficult due to COVID-19, but we see next year as the biggest hurdle and are focusing on preparing countermeasures for each affiliate." The official also said, "Personnel changes and organizational restructuring will be expedited to complete organizational reorganization within the year and focus on next year's business." Inside and outside the group, there is a forecast that the regular December personnel reshuffle will be brought forward by more than a month. Lotte recently completed the personnel evaluation for about 600 executives across all affiliates for the past three years about 20 days earlier than the previous year. As the sense of crisis has increased due to the poor performance of key affiliates, there is a strong expectation that personnel and organizational restructuring will be carried out on a larger scale than in the past.

Meanwhile, Shin Dong-bin's eldest son, Shin Yoo-yeol, has joined Japan's Kabushiki Kaisha Lotte. Although his position and duties have not been disclosed, it is known that he is working at a director-level or higher position. Lotte operates confectionery and ice cream businesses as a subsidiary of Japan Lotte Holdings. Born in 1986, Shin graduated from Keio University in Japan and completed an MBA program at Columbia University in the United States. He has worked at Nomura Securities' Singapore branch and other places. With the news of Shin's entry into Japan Lotte, interpretations have emerged that preparations for the third-generation management system have begun. Chairman Shin Dong-bin also graduated from a university in Japan and received an MBA from Columbia University. After working at Nomura Securities' London branch and Japan Lotte Sangyo, he joined Honam Petrochemical (now Lotte Chemical) in 1990.

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