100th Anniversary of Birth... Learning the Indomitable Spirit Left by 'Founder Shin Gyeok-ho'

[Saramin] Shin Kyuk-ho, Honorary Chairman of Lotte Group
Started Business in Japan in 1941
Rose to 5th Largest Conglomerate in Korea
Focus on Field Management with GeoHwaChwiSil (去華就實)
Concentrated on Areas of Expertise

Marking the 100th anniversary of Honorary Chairman Shin Kyuk-ho's birth, Lotte Group is once again focusing on his entrepreneurial spirit embodied in the phrase 'Geohwachwisil (去華就實·eschewing extravagance and pursuing practicality).' Having faced difficulties in recent years amid rapidly changing external environments, the group is determined to find new growth engines and pursue change by leveraging the DNA of challenge and passion that the founder Shin personally practiced, aiming to move forward as a new Lotte.

Reflecting on the Founding Spirit on the 100th Anniversary

On the 3rd, the exact day of Honorary Chairman Shin's 100th birthday, Lotte Group will hold various commemorative events alongside the publication of his memoir, Passion Never Sleeps. To carry on the founder's spirit of challenge, a total of 500 million KRW in support funds will be awarded to 13 startups selected through an accelerating program. Scholars who have contributed to distribution policy and industry development through research related to distribution studies will also be honored. The Lotte Scholarship Foundation will express gratitude to nurses who have devoted themselves on the frontlines of COVID-19 by awarding a total of 120 million KRW in patriotic scholarships to 110 children of nurses.

Born on November 3, 1921, in Ulju, Gyeongnam, Honorary Chairman Shin went alone to Japan in 1941 by boarding a military liaison ship and started his business in 1948 with just one pack of gum. Thereafter, Lotte expanded step by step into chocolates, candies, and other fields, becoming one of Japan's leading comprehensive confectionery companies in just over 20 years.

In 1966, Honorary Chairman Shin established Lotte Aluminum (formerly Dongbang Aluminum Industry), and in 1967, Lotte Confectionery, beginning domestic operations. At that time, the government suggested building a new hotel on the site of the Bando Hotel. After much consideration, Shin built not only a 40-story, 1,000-room hotel but also a department store and office town simultaneously. This is today's Sogong-dong Lotte Hotel. Since then, Lotte has expanded its business areas to food, distribution, tourism, construction, and chemicals, growing into the fifth-largest conglomerate in Korea with assets worth 100 trillion KRW. Until 2011, Honorary Chairman Shin spent odd months in Korea and even months in Japan, actively managing operations, coining the term 'shuttle management.'

Founder Shin Kyuk-ho attending the opening ceremony of Lotte Department Store Yeongdeungpo Branch in May 1991

Engraved on His Tombstone: "Have You Been There?"

Honorary Chairman Shin often urged executives and employees to verify the site with their own eyes and feet. When in Korea, he would suddenly appear at Lotte Department Store, Lotte Mart, or Lotte Hotel sites to inspect stores, customer service, cleanliness, and safety checks meticulously, personally practicing the 'field management' he emphasized. The question he most frequently asked employees during his active years was, "Have you been there?" This phrase, emphasizing field management and diligence, is also engraved on his tombstone.

To subsidiary presidents, he repeatedly stressed, "You must focus your capabilities on the areas you do best." His philosophy was that expanding into unfamiliar businesses recklessly could ultimately harm many stakeholders, so new businesses should be pursued only if they create synergy with existing businesses and strengthen core competencies. He also said, "Entrepreneurs should actively seek good opportunities when the economy is difficult and manage with a mindset to prepare for hard times when performance is good." Lotte's management style, often described as cautious to the point of conservatism, stems from Honorary Chairman Shin's 'responsible management.'

Honorary Chairman Shin Kyuk-ho visiting the site of Lotte World Tower in Jamsil in 2011

Korea’s Representative Landmark

When Honorary Chairman Shin planned to build a massive complex encompassing a theme park, hotel, department store, and shopping mall in the middle of the Jamsil reservoir area, Lotte executives worried that the lack of a surrounding commercial district might hinder business. Shin confidently stated, "Commercial districts are not given; they are created through good products and excellent service. The Jamsil area will soon become as bustling as Myeongdong," and this soon became a reality.

Furthermore, Honorary Chairman Shin set a lifelong dream to build the world's tallest building here, making it a new landmark of Korea. Over more than 20 years, he revised the master plan 23 times, finally completing the 123-story Lotte World Tower in 2017.

Shin Dong-bin, Chairman of Lotte Group, said, "Honorary Chairman Shin worked with a firm belief that Korea should become prosperous and our people should live well, striving to create a company that helps society and neighbors. Lotte must fulfill its social role as a company that gives dreams and hope to more customers."

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