Shin Dong-bin: "Switching Business to 4 New Growth Areas... Selling Underperforming Businesses"

Yomiuri Shimbun Interview
"Not Only Buying but Also Partial Selling Underway"

Shin Dong-bin, Chairman of Lotte Group, announced on the 30th through an interview with a local Japanese media outlet that the company will shift its business to four new growth areas and sell off underperforming businesses.

Chairman Shin Dong-bin [Photo by Yonhap News]

In the interview with Yomiuri Shimbun on the same day, Chairman Shin said, "We have acquired about 60 companies, large and small, so far, but now we have changed our policy to not only acquire but also partially sell off some businesses."

Chairman Shin identified four new growth areas: biotechnology, metaverse, hydrogen energy, and secondary battery materials. He explained, "We are continuously replacing businesses with those that will grow in the future." He added, "Until now, we have operated with a Japanese-style management approach, so external talent was limited, but now we believe new fields require new talent, and we are actively recruiting professionals."

Chairman Shin also addressed the issue of China's retaliation against Lotte following the deployment of the U.S. THAAD (Terminal High Altitude Area Defense) system in South Korea in 2016. He said, "We had department stores, supermarkets, beverage and confectionery factories in China, but after providing land to the U.S. military in South Korea at the request of the Korean government, China opposed this and we withdrew." He emphasized, "While our overseas business has focused on emerging Asian countries, going forward, we cannot avoid reviewing matters including geopolitical issues."

Regarding the management dispute with his older brother Shin Dong-joo, former Vice Chairman of Lotte Holdings Japan and Chairman of SDJ Corporation, he stated, "The management dispute has been resolved," and added, "As a public company, we want to be clear and transparent." About Shin Kyuk-ho, the founder and honorary chairman of Lotte Group, Chairman Shin said, "My father always told me to 'go to the site and see with your own eyes,' and 'do not judge just by hearing or seeing.' People tend not to share bad information, so I always make sure to verify the facts."

Chairman Shin said, "There was a time when we boasted about being in the 'Top 10 in Asia' by sales, but I think there were some issues with that," and added, "From now on, it is better to consider profits and customer satisfaction as well." He expressed his ambition, saying, "We will pursue well-being, including not only material but also spiritual happiness, and thus I want to make Lotte a truly global company."

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