Lotte Energy Materials Introduces Lotte Group's Personnel System

Kim Yeonseop, CEO of Lotte Energy Materials, is conducting a quarterly management briefing at the Seoul office in early last month, explaining the company's performance and status to domestic and international employees ahead of the third-quarter earnings announcement. Photo by Lotte Energy Materials

Lotte Energy Materials has adopted Lotte Group's personnel system.

Lotte Energy Materials, which was incorporated into Lotte Group last March, newly introduced the group’s personnel system framework as of the 1st of this month as part of the PMI (Post-Merger Integration) process.

First, to establish a horizontal communication structure and a flexible organizational system, the rank system, which was previously composed of eight levels, was reduced to four levels: Employee - Assistant Manager - Manager - Senior Manager. By introducing a rank system centered on job expertise rather than seniority, positions are assigned based on roles and performance within the organization, enabling early selection and development of outstanding talent.

Next, the employee compensation system was also improved. The existing comprehensive wage system was abolished, and a fair and systematic evaluation-based differentiated raise rate was applied according to regulations, transitioning to a wage structure with clear performance-based rewards. Additionally, new allowances were introduced for position holders as well as research and development and special duty personnel, adding compensation for roles. Through this, the company plans to enhance transparent performance management and compensation competitiveness.

Moreover, a new employee evaluation system was introduced. Achievement scores are derived based on goal attainment and difficulty, and comprehensive evaluation grades are assigned by referring to competency evaluation results, which are then reflected in rewards and promotions. To nurture core talent, job and leadership competency evaluations are also conducted. The plan is to provide performance-based rewards in the short term and to foster talent in the long term.

Kim Yeon-seop, CEO of Lotte Energy Materials, stated, "The introduction of Lotte Group’s personnel system aims to establish a culture where outstanding talents can immerse themselves in work within a systematic system and be recognized for their achievements." He added, "We will continue to establish various systems and educational programs so that employees can sustain growth and maintain competitiveness, nurturing them as global leaders."

Meanwhile, since its establishment, Lotte Energy Materials has been actively communicating with employees while building a new corporate culture. Prior to announcing management performance, CEO Kim Yeon-seop holds quarterly management briefings to share company performance and status with employees working domestically and abroad. In addition, the company operates semi-annual strategy meetings to establish mid- to long-term plans and future strategies, expanding activities for qualitative growth.

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