Kang Hee-tae, CEO of Lotte Shopping, Apologizes for Lotte ON Trial Errors... Plans to Introduce External Experts

Kang Hee-tae, CEO of Lotte Shopping. [Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] Kang Hee-tae, CEO of Lotte Shopping, apologized on the 23rd for the poor performance of 'Lotte On,' the integrated online mall of Lotte Group's distribution affiliates, and promised to improve the company's structure by introducing external experts.

At the 51st shareholders' meeting held at Lotte Big Market Yeongdeungpo branch in Seoul on the same day, CEO Kang said, "We have experienced many trial and errors in e-commerce and have not achieved the expected results, and I apologize to the shareholders," adding, "We will strengthen the group's capabilities by bringing in external experts."

CEO Kang stated, "Due to the COVID-19 pandemic, consumption has contracted, and a prolonged economic downturn is expected," and added, "We will become a game changer that changes the market framework through bold changes and innovation."

He also said, "Last year, we planned to restructure about 200 stores, which is 30% of all stores," and "We have completed the restructuring of about 120 stores and will continue to do so over the next two years to achieve profit-centered growth."

Regarding questions about the acquisition of eBay Korea, CEO Kang explained, "We are sufficiently interested in acquiring eBay Korea," and "We have received a company introduction document to review the acquisition, but specific details will be disclosed through official announcements."

Lotte Shopping was directly hit by COVID-19 last year. Sales dropped 8.8% to 16.0761 trillion won, and operating profit fell 19% to 346 billion won.

Meanwhile, Lotte Shopping reappointed CEO Kang as an inside director and approved the appointment of Kang Sung-hyun, head of Lotte Shopping's Mart Business Division, and Choi Young-jun, head of the Finance Headquarters, as new inside directors.

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