Lotte and SK Third-Generation Owners Face Management Ability Test in 'Bio' Sector

Shin Dong-bin Chairman's Eldest Son Shin Yu-yeol
Attends Lotte Bio Songdo Groundbreaking Ceremony
Choi Tae-won Chairman's Eldest Daughter Choi Yoon-jung
Promoted to Vice President of SK Biopharm
Special Mission to Discover Group's Future Growth Engines

Recently, the third-generation heirs of SK and Lotte, who have begun "warming up" as the next successors, are all making their debut through bio-affiliated companies. The business community interprets the decision by SK Chairman Chey Tae-won and Lotte Chairman Shin Dong-bin to place their children in the untapped bio sector?rather than in their core businesses such as semiconductors, telecommunications, distribution, and chemicals?as a mission to "discover future growth engines for the group" and to test their capabilities.

According to industry insiders on the 11th, Shin Yu-yeol, the eldest son of Lotte Group Chairman Shin Dong-bin and Executive Director, is set to begin active management activities as an executive of Lotte Biologics, starting with attending the groundbreaking ceremony for the first plant of the Songdo Bio Plant, scheduled to commence construction in the first half of this year. Born in 1986, Executive Director Shin joined Japan's Lotte Holdings in 2020 and received management training through domestic affiliates such as Lotte Chemical and Lotte Financial. Last month, in the '2024 Regular Executive Personnel Appointment,' he was officially promoted by taking on the roles of Head of Future Growth Office at Lotte Holdings and Head of Global Strategy Office at Lotte Biologics.

According to industry sources, Lotte Group is aiming to become a 'Global Top 10' Contract Development and Manufacturing Organization (CDMO) in biopharmaceuticals, and the groundbreaking ceremony for the Songdo Bio Plant marks the first step in this endeavor. Executive Director Shin is making his official debut as part of the management team of Lotte Biologics at this event. The Global Strategy Office of Lotte Biologics is responsible for bio investments, mergers and acquisitions (M&A), and joint venture establishment. The Future Growth Office at Lotte Holdings, which Executive Director Shin also oversees, manages the bio and healthcare industries and is tasked with discovering a second growth engine.

At SK Group, Chey Tae-won's eldest daughter, Chey Yoon-jung, Head of Business Development at SK Biopharm, was promoted to executive (Vice President) in the year-end personnel reshuffle last year. Born in 1989, Vice President Chey joined the company in 2017 and became an executive within six years. SK Biopharm integrated its investment and business development departments and entrusted them to Vice President Chey. From the 9th, she attended the ongoing 'JP Morgan Healthcare Conference' in San Francisco, USA, marking her first public appearance since her promotion. On this occasion, she accompanied SK Biopharm President Lee Dong-hoon as he presented the achievements of the company's epilepsy drug 'Cenobamate.' During the event, she actively engaged with global investors to propose business initiatives, signaling the start of her active management role. According to FnGuide, SK Biopharm's sales this year (based on the average forecast from securities firms over the past three months) are expected to increase by 44.5% from last year's 339.6 billion KRW to 490.8 billion KRW, turning profitable. Sales are projected to reach 651.7 billion KRW and operating profit 167.5 billion KRW in 2025, indicating a continuous upward trend in performance.

However, SK Biopharm accounts for only 0.25% of SK Group's total sales, which amount to 200 trillion KRW. Despite this, the business community interprets Chairman Chey Tae-won's decision to place his eldest daughter here as a directive for Vice President Chey to prove her independence by growing the bio business without relying on the existing affiliates' support.

Lotte Biologics, where Executive Director Shin Yu-yeol is making his debut, is also a small affiliate that has just taken its first steps in its second year since establishment. In the first half of last year, it recorded sales of 83.1 billion KRW and net profit of 20.7 billion KRW, making its current share within the group minimal.

An industry insider said, "It is customary for the heirs of conglomerate heads to gain practical experience by rotating through core affiliates and then move to the holding company, but these two groups seem to be anticipating the rapid growth of the bio industry and are conducting successor training within bio affiliates."

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