Shin Dong-bin: "Abandon Past Success Methods"... A Stern Message to Overcome Crisis (Comprehensive)

Core Management Keyword 'Unlearning Innovation' Presented
Emphasizing New Business and Overseas Expansion... Create a Distinctive Success Approach

Shin Dong-bin, Chairman of Lotte, emphasized at the Lotte Group's second half VCM (formerly the CEO meeting) held on the 18th, "Abandon past success experiences and create new ways of success." He also called for intensive consideration of overseas business and new ventures.

At the Lotte Group 2023 second half VCM held at the Signiel Hotel Grand Ballroom in Songpa-gu, Seoul, Chairman Shin presented the core management keyword for overcoming the crisis as 'Unlearning Innovation.' Using 'Unlearning,' which means 'to forget what has been learned or experienced,' he stressed discarding mindsets and behaviors that were effective in the past but now limit current success. Chairman Shin urged the attending chairpersons, "We must not ignore environmental changes and cling to past success experiences," adding, "We need to create our own differentiated success methods that fit the current environment with flexible thinking."

Shin Dong-bin, Chairman of Lotte [Photo by Lotte Holdings].

On this day, Lotte Group gathered over 80 people including Lee Dong-woo, CEO of Lotte Holdings, heads of each business division, affiliate CEOs, and Lotte Holdings executives to review past management performance and discuss sustainable growth. After the strategic presentations from each business division, Chairman Shin emphasized, "Please change your business perspectives and viewpoints," and added, "You must continuously consider not only domestic and existing businesses but also overseas and new businesses." He further stated, "Along with external growth such as sales and profits, it is necessary to strengthen management in terms of cash flow and capital costs, and always view the business from an ESG (Environmental, Social, Governance) perspective."

Chairman Shin listed unprecedented management environments such as global economic bloc formation, high interest rates and inflation, and accelerated technological advancement, and expressed the need to consider new growth markets like Southeast Asia as well as advanced markets such as the U.S. and Europe. He also said that AI technology will bring significant changes to the world like past PC, internet, and mobile revolutions, emphasizing, "It is necessary not only to accept the technology but also to find new opportunities and translate them into bold execution."

Chairman Shin requested three management policies: ▲transition to a future-oriented business portfolio ▲investment aligned with vision and strategy ▲proactive risk management. He urged, "Please transition to a portfolio composed of high-growth, high-profit businesses and those aligned with ESG," emphasizing, "Strengthen the competitiveness of existing businesses and prepare future new growth engines with the profits generated."

He stressed the need for balanced thinking that carefully judges areas requiring investment such as facilities, research and development (R&D), intangible assets, technology, and talent, while simultaneously considering the resources invested and the returns generated. He also asked for proactive management of various risks arising during the transformation process by establishing systems.

Meanwhile, Shin Yoo-yeol, the eldest son of Chairman Shin and Executive Director of Lotte Chemical, also attended the VCM. This was his second time attending in person since the January VCM held face-to-face for the first time in three years after COVID-19. Ahead of the VCM, Executive Director Shin expanded his management training by visiting the Lotte Homeshopping headquarters in Yangpyeong-dong, Seoul, recently to discuss business with executives and tour the on-site studio. This has led to speculation that the third-generation management succession of Lotte Group may be accelerating.

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