"Turnaround Amid Complex Crisis" Chairman Shin Dong-bin Emphasizes 'Fundamental Change' at H2 VCM

Lotte to Hold Second Half VCM in Busan on 14th to Review Management Plans
Review New Growth Business Roadmap and Discuss Value Enhancement Strategies for Four Business Units
Support '2030 Busan World Expo' Bid Using Group Infrastructure

Shin Dong-bin, Chairman of Lotte (second from left), Song Yong-duk, Vice Chairman of Lotte Holdings, Lee Dong-woo, Vice Chairman of Lotte Holdings, and singer Rain (Jung Ji-hoon) are attending the "Fly to World Expo" event at Sajik Baseball Stadium in Busan on the 13th, praying for the successful bid of the 2030 Busan World Expo, and are taking a commemorative photo.

[Asia Economy Reporter Yuri Kim] Shin Dong-bin, Chairman of Lotte, has embarked on a group-wide initiative to enhance corporate competitiveness and overcome the complex crisis amid unstable international conditions.

On the 14th, Lotte held the '2022 Second Half VCM (formerly the CEO Meeting)' in Busan to discuss the group’s management plans and strategic directions. The VCM was attended by about 80 people, including Chairman Shin, Song Yong-duk and Lee Dong-woo, CEOs of Lotte Holdings, heads of the four business divisions (HQs) in food, distribution, chemicals, and hotels, as well as representatives from each affiliate.

The second half VCM began in the morning with an external lecture on the theme of 'Business Competitiveness Driving Turnaround Realization.' Afterwards, the group reviewed the preparation status of new businesses and examined the vision and roadmap for the business portfolio. The management environment and strategic directions for each business division were also discussed. Finally, Chairman Shin is expected to deliver a message emphasizing fundamental changes needed to become a competitive company and the importance of CEO leadership.

On this day, Lotte discussed 'portfolio advancement plans' through business expansion and restructuring. The group plans to foster core businesses by promoting bio contract development and manufacturing organization (CDMO), healthcare platforms, and electric vehicle charging infrastructure in the health & wellness, mobility, and infrastructure sectors. The food, distribution, chemical, and hotel business divisions will seek new growth engines such as next-generation food materials and hydrogen energy while strengthening existing competitiveness. Proactive responses to areas with persistent risks such as ESG (environment, social, governance) activities, which have become essential for sustainable management, industrial safety, finance, and information security were also emphasized.

The four business divisions will present mid- to long-term strategies for the first time since the organizational restructuring at the end of last year. They will exchange opinions on ▲industry trends and management activity reviews ▲plans for new business and global business promotion ▲and organizational capability enhancement measures to improve execution.

The food division will explore mega brand development, value chain advancement, and growth infrastructure establishment to secure competitiveness. The distribution division will emphasize innovation in organizational culture, business, and portfolio based on the new vision of being the 'customer’s first shopping destination.' The chemical division will focus on plans to promote new businesses such as hydrogen energy, battery materials, and recycled and bio plastics. The hotel division will share strategies for business structure reorganization and organizational health improvement.

Lotte Global Logistics and Lotte Data Communication, which play key roles in building group infrastructure, will also review their strategic directions. Lotte Global Logistics will discuss plans to expand logistics infrastructure investment, logistics innovation, and business diversification, while Lotte Data Communication will cover digital transformation connecting the group’s value chain, data integration, and five core business initiatives to secure new growth engines.

Plans to support the bid for the '2030 Busan World Expo' will also be explored. Previously, Lotte formed a company-wide organization called the 'Lotte Group Bid Support TFT,' led by Song Yong-duk and Lee Dong-woo, CEOs of Lotte Holdings. In the TFT, the food and distribution divisions focus on domestic activities, while the hotel and chemical divisions concentrate on overseas activities. They plan to actively engage in Expo bid efforts by leveraging domestic and international business infrastructure and networks. Chairman Shin supported the bid by attending the 'Fly to World Expo' event held at Busan Sajik Baseball Stadium the day before.

The food and distribution divisions will run Expo bid promotional campaigns targeting consumers visiting stores by utilizing in-house media installed at nationwide Lotte Department Stores, Lotte Mart, Lotte Ria, and other distribution and franchise outlets. The hotel and chemical divisions will inform about the Expo bid preparation status through bases such as Lotte Hotels in the U.S. and Vietnam, and duty-free shops at overseas airports in the U.S., Japan, and Australia. The group’s second half campaign video, including a phrase wishing for the Expo bid success, will be broadcast to 117 countries.

Shin Dong-bin, Chairman of Lotte, is participating in the '2022 Second Half VCM' held on the 14th at Signiel Busan. Lotte explained that although Chairman Shin usually listens to presentations from the front row, for this VCM, he moved to the back seats to allow attendees to freely share their opinions in a more relaxed atmosphere.

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