[New Business World 3rd and 4th Generation] ② Shin Yuyeol, Head of Future Growth Office at Lotte Holdings, Searching for 'Future Food Sources'

Shin Dong-bin Lotte Chairman's Eldest Son Shin Yu-yeol
Promoted to Executive Director of Lotte Group Early This Month... Succession Process Accelerates
Directly Oversees Future Growth Engines and Bio Business

Shin Yu-yeol (37), the eldest son of Shin Dong-bin, Chairman of Lotte Group, was promoted to Executive Director in the regular executive personnel reshuffle of Lotte Group on the 6th. Industry insiders expect that Shin's promotion will accelerate his formal management training and succession process. However, there are also views that significant challenges remain, such as securing shares in Japanese and Korean Lotte affiliates, which are essential for full-scale succession.

According to Lotte Group on the 20th, Shin now concurrently holds the newly established position of Head of Future Growth Office at Lotte Holdings and Head of Global Strategy Office at Lotte Biologics following the recent personnel changes. He has taken on the important role of leading the group's future growth businesses while directly participating in the management of the bio business. Lotte stated regarding Shin's promotion and transfer to the holding company, "He has continuously been involved in the group's core future growth sectors such as bio and healthcare, delivering results, and has laid the groundwork for full-scale management participation."

Shin has experienced rapid promotions over the past three years since joining the company. He joined Lotte Japan as a department head in 2020, then in May last year, he joined Lotte Chemical Japan branch as an assistant managing director. In August, he was appointed co-CEO of Lotte Strategic Investment, the largest shareholder of Lotte Financial Japan. He was promoted to managing director in December of the same year and has served as CEO of Lotte Financial since July this year. Now, he has risen to the position of executive director in this recent reshuffle.

Since his promotion to managing director last year, Shin has accompanied Chairman Shin on domestic and overseas business trips to receive management training. Last month, he traveled to Europe, toured local distribution channels, and met with Tim Steiner, CEO of the UK-based global distribution company 'Ocado.' Earlier in September, he attended the grand opening ceremony of 'Lotte Mall West Lake Hanoi' held in Vietnam. At that time, Chairman Shin said of his son, "Our son is studying various things," and added, "We are considering various activities for him going forward," showing his support.

As the future head of the Future Growth Office directly under the CEO of the holding company, Shin will participate in meetings personally chaired by Chairman Shin, expanding his involvement in management. In particular, the industry expects that Shin, born in 1986, will regain Korean nationality as early as next year, solidifying the third-generation management system. Shin completed all his elementary, middle, and high school education in Japan and currently holds only Japanese nationality.

The top priority task in Shin's succession process is securing shares in the Korean and Japanese holding companies, Lotte Holdings and Lotte Holdings Japan, as owner management without shares is impossible. Lotte Holdings Japan is the largest shareholder of Hotel Lotte and has a shareholding structure that flows through Kwangyunsa - Lotte Holdings Japan - Hotel Lotte - Lotte Holdings Korea. However, it is reported that Shin currently holds no shares in either Lotte Holdings Korea or Lotte Holdings Japan. Accordingly, the industry expects that as Shin begins full-scale participation in Korean Lotte management, he will soon move to acquire shares through purchasing treasury stock.