Lotte Executive Meeting Kicks Off Under Tight Security... Chairman Shin Dong-bin's Directive

2020 First Half Lotte VCM Held on the 15th

[Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] Under the chairmanship of Chairman Shin Dong-bin, Lotte Group's one-year business plan has begun to take shape under tight security. Following a large-scale executive reshuffle last year involving 40% of the total personnel, it is expected that Chairman Shin Dong-bin will order a new management strategy to transform the distribution landscape as a 'game changer.'

On the afternoon of the 15th, Shin Dong-bin, Chairman of Lotte Group, held the first half of the year Lotte Presidents' Meeting (VCM·Value Creation Meeting) at the Jamsil Lotte World Tower. The meeting, which started at 2 p.m., is expected to continue until late at night.

[Image source=Yonhap News]

Around 1 p.m. that day, most of the presidents, including Chairman Shin Dong-bin, did not appear in front of the waiting press at Lotte World Tower. This was because they moved directly from their offices inside the building, where external access was restricted, to the meeting room. Some presidents, including Lee Gap, CEO of Lotte Duty Free, Nam Ik-woo, CEO of Lotte GRS, Kim Hyun-sik, CEO of Hotel Lotte, and Ha Seok-joo, CEO of Lotte Construction, passed through the first-floor lobby and only smiled without answering questions related to business issues.

The meeting will share the 2020 economic outlook, a review of the 2019 group company performance and mid-term plans, as well as major group issues and strategies. A talk concert will also be held where key executives responsible for digital transformation (DT) at major affiliates gather to discuss the current status and future challenges of Lotte's DT initiatives.

[Image source=Yonhap News]

Given that Lotte Group carried out a large-scale personnel reshuffle last year, major issues appear to be piling up. In the 2020 regular executive appointments, Lotte Group replaced two heads of the distribution business unit (BU) and deployed mostly 50-something professional CEOs to lead key affiliates. This was a large-scale reshuffle involving 40% of the total personnel last year.

Organizationally, the focus was on 'Global Lotte.' Vice Chairman Kang Hee-tae, head of Lotte Group's distribution BU, took on the role of control tower leading an integrated corporation encompassing all of Lotte's distribution channels, maximizing business synergy by integrating liquor and beverage businesses. Additionally, the group increased the proportion of local executives in overseas subsidiaries worldwide to strengthen localization efforts.