"Thorough Preparation for an Uncertain Business Environment"
[Asia Economy Reporter Lim Chun-han] Shin Dong-bin, Chairman of Lotte Group, stated on the 12th, "If we do not challenge ourselves for change and innovation, the future will not be much different from the past."
Chairman Shin said at the afternoon Value Creation Meeting (VCM, formerly the Executive Meeting) for the first half of the year, "This year is an important time to prove the efforts we have prepared over the past few years for a leap forward."
He added, "The past decade was a period of stable management environment, but now it has become an era of constant crisis," urging management policies and the attitude of CEOs to overcome the anticipated external environment.
Regarding management goals, Chairman Shin said, "The goal is to become a company with global competitiveness and enhance corporate value," defining global competitiveness as securing the status of a world-leading company and enhancing corporate value as generating sustainable growth and profits.
He emphasized, "To achieve management goals, a healthy business portfolio must be built," and requested that management resources be focused and nurtured so that core businesses can acquire global competitiveness. In particular, he stressed continuous investment in talents, research and development (R&D), digital transformation (DT), and branding, which form the growth foundation of core businesses.
Chairman Shin urged CEOs to "actively challenge themselves by turning crises into opportunities for future growth and thoroughly prepare for uncertain management environments." Referring to examples such as the BMS factory in Syracuse, USA, and Iljin Materials, which Lotte invested in last year, he explained, "We considered these investments essential for achieving the vision of the group and the company, and despite being large-scale investments, bold and swift decision-making was possible."
He also said, "Please communicate clearly and continuously with employees according to priorities for achieving the mid- to long-term vision, and make decisions that align with the interests of key stakeholders such as customers, shareholders, and employees."
This meeting was held face-to-face for the first time in three years since the COVID-19 pandemic, and Shin Yoo-yeol, the eldest son of Chairman Shin and Executive Director of Lotte Chemical, also participated. This was the first time Shin Yoo-yeol attended the executive meeting. He is evaluated to have started full-scale management training, having accompanied Chairman Shin on a business trip to Vietnam last August.
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