Shin Dong-bin, Chairman of Lotte Group, has returned as an inside director of Lotte Chilsung Beverage after three years, which is expected to accelerate the new businesses promoted by Lotte Chilsung Beverage. This move is also anticipated to strengthen the 'Health & Wellness' business, one of Lotte Group's future growth drivers.
On the 22nd, at the regular shareholders' meeting held at Lotte Hotel World in Songpa-gu, Seoul, Lotte Chilsung Beverage passed the agenda including the appointment of Chairman Shin as an inside director. At the meeting, the approval of the 56th fiscal year financial statements and consolidated financial statements, the appointment of directors, the appointment of outside directors as audit committee members, and the increase of the director remuneration limit from 3 billion KRW to 5.5 billion KRW were also approved. CEO Park Yoon-ki of Lotte Chilsung was reappointed as an inside director.
Chairman Shin's return as an inside director of Lotte Chilsung Beverage comes three years after his resignation at the end of 2019. He was first appointed as an inside director in 2017 and reappointed in 2019 but stepped down in December of the same year. At that time, he also resigned from inside director positions at Lotte Shopping, Hotel Lotte, and Lotte Construction. Lotte Chilsung Beverage explained that this was to strengthen responsible management and enable swift decision-making in global investments, mergers and acquisitions, and business expansion.
With Chairman Shin's return as an inside director, new liquor businesses related to wine and whiskey promoted by Lotte Chilsung Beverage are expected to gain momentum. Many expect that with Shin personally overseeing management, investments and mergers and acquisitions related to new businesses will be pursued aggressively.
Lotte Chilsung Beverage is pushing forward with the establishment of a tourism-oriented whiskey distillery in Seogwipo, Jeju, aiming for completion next year. Since 2021, Lotte Chilsung Beverage has set up a Jeju distillation team and started research and development of Korean-style whiskey in collaboration with the Korea Food Research Institute. To this end, they have also recruited a Scottish whiskey expert. Although this business requires steady investment and visible results may not come immediately, it is expected that Chairman Shin’s direct involvement will add momentum. Active acquisitions of domestic and overseas wineries are also anticipated.
The 56th regular shareholders' meeting of Lotte Chilsung Beverage was held on the 22nd at Lotte Hotel World in Songpa-gu, Seoul. [Photo by Lotte Chilsung Beverage]
In Lotte Group’s key growth area, the ‘Health & Wellness’ business, future food businesses led by Lotte Chilsung Beverage and Lotte Confectionery are expected to accelerate rapidly. Lotte Group plans to invest 2.1 trillion KRW in the food business sector going forward, with a particular focus on expanding health functional foods and functional food businesses.
Meanwhile, Lotte Chilsung’s operating profit last year was 222.9 billion KRW, a 22.3% increase compared to the previous year. Sales rose by 13.4% to 2.8417 trillion KRW.
At the shareholders' meeting, CEO Park stated that this year they will focus on nurturing mega brands, building a health and lifestyle portfolio, securing future growth engines, advancing the value chain, creating social value through ESG, and establishing a future-oriented organizational culture.
CEO Park emphasized, "Although uncertainties and difficulties in the business environment are expected to continue this year, we will wisely respond to these uncertainties by discovering growth opportunities, establishing efficient processes, and implementing proactive and aggressive management strategies in each field."
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