First Half VCM (Executive Meeting) Held
Chairman Shin Dong-bin and Over 80 Affiliate Representatives Attend
Memorial Event for Founder’s 4th Death Anniversary Held Before Meeting
"The global economy has entered an era of hyper-uncertainty with increased volatility due to prolonged low growth and persistent inflation." (Shin Dong-bin, Chairman of Lotte, 2024 New Year's Address)
On the 18th, Lotte Group will hold its first half Value Creation Meeting (VCM, formerly known as the Presidents' Meeting) chaired by Chairman Shin Dong-bin to discuss this year's management plans and mid-to-long-term business strategies. It is expected that they will review last year's business performance and explore ways to enhance core competencies by business sector.
On the 18th, one day before the 4th anniversary of Lotte founder Shin Kyuk-ho's passing, Shin Dong-bin, Chairman of Lotte Group, is seen paying silent tribute in front of the bust of Honorary Chairman Shin Kyuk-ho, set up on the first floor of Lotte World Tower in Songpa-gu, Seoul. Photo by Kang Jin-hyung aymsdream@
VCM is a biannual meeting of Lotte Group's presidents held every first and second half of the year. Attendees include Chairman Shin, the CEO of Lotte Holdings, heads of each business division, and representatives of affiliates. About 80 key executives of Lotte, including Chairman Shin, are expected to attend the VCM held in the afternoon at Lotte World Tower in Jamsil, Seoul. Shin Yoo-yeol, Chairman Shin's eldest son and head of the Future Growth Office who recently moved to Lotte Holdings at the end of last year, is also expected to attend the meeting.
At this first half VCM, Lotte Group plans to assess the group's management status amid the global complex crisis and discuss strategies to strengthen future business capabilities. In this process, the Lotte Future Strategy Institute will analyze potential external risk factors and share response plans by business sector. Discussions are also expected on the progress of technology investments and business innovation plans for the 'AI Transformation' emphasized by Chairman Shin in his New Year's address. Additionally, the Design Strategy Center will diagnose the group's design competitiveness and share tasks to elevate it to the next level.
Lotte is currently facing red flags across its business operations due to worsening domestic and international economic conditions. Concerns are growing that the real estate project financing (PF) insolvency will spread throughout the construction industry, leading to liquidity crisis rumors surrounding Lotte Engineering & Construction, and its largest shareholder, Lotte Chemical, is also under this influence. Lotte Homeshopping experienced deficit management last year due to the unprecedented suspension of early morning broadcasts. The core retail business has also failed to meet market expectations as consumption slows down amid high inflation and high interest rates.
Chairman Shin is expected to urge the heads of each affiliate to play their roles in overcoming these crises and achieving the group's mid-to-long-term management goals. Earlier, in his New Year's address on the 2nd, Chairman Shin diagnosed that the global economy has entered an era of hyper-uncertainty and urged, "To leap forward beyond past successes, we must create opportunities amid crises." He emphasized the need to coldly analyze the group's capabilities, enhance core competencies by business, and continuously improve technology for future high value-added businesses.
Meanwhile, prior to the VCM, Chairman Shin and the heads of each business division along with the heads of Lotte Holdings gathered at the bust of Shin Kyuk-ho, the founder of Lotte, located on the first floor of Lotte World Tower, to commemorate the 4th anniversary of his passing (January 19). Following the order of the ceremony, Chairman Shin first observed a moment of silence, laid flowers, and then the executives laid flowers according to their ranks. After the flower-laying, they concluded the memorial service with a group moment of silence. Affiliate representatives visiting Lotte World Tower for the afternoon VCM will also voluntarily lay flowers to pay tribute to the founder.
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