Walking a Similar Path as Father Draws Attention
Industry and Surroundings Are Completely Different
Interest in Whether He Will Use His Own 'Success Equation'
Shin Yu-yeol, the eldest son of Shin Dong-bin, Chairman of Lotte Group, has been appointed as an inside director of Japan's Lotte Holdings. With Shin now holding executive positions in both the Korean and Japanese Lotte holding companies, the era of the 'third-generation Lotte' is officially underway. Industry insiders view Shin as following the same path his father, Chairman Shin, took. However, despite many overlaps between father and son, the industries they are pursuing and the surrounding environments are vastly different, drawing attention to whether Shin can establish his own 'success formula.'
Shin Yu-yeol appointed to executive roles in both Korean and Japanese Lotte holding companies
According to the distribution industry on the 29th, at the regular shareholders' meeting of Japan's Lotte Holdings held on the 26th, the agenda to appoint Shin as an inside director was approved. Previously, Shin Dong-joo, Chairman of SDJ Corporation (former Vice Chairman of Lotte Holdings) and elder brother of Chairman Shin, opposed Shin Yu-yeol's appointment, citing "unproven management capabilities," but the majority could not be overturned.
Despite opposition from former Vice Chairman Shin, Shin Yu-yeol's name was included on the list of inside directors of Lotte Holdings. Lotte Holdings is the holding company of Japan's Lotte and a core entity spanning both Korea and Japan. By holding executive positions in both Korean and Japanese Lotte holding companies, Shin's presence within the group has grown significantly.
Shin's appointment as an inside director of Lotte Holdings means he can now have a voice in major group decisions. This can be interpreted as Shin, who has been receiving management training, stepping to the forefront of management not only in Korea but also in Japan's Lotte.
Shin's path closely resembles his father's... first management role also in a similar 'new business'
Shin is following a path similar to that of his father, Chairman Shin. Shin attended Aoyama Gakuin, a prestigious Japanese school, completing kindergarten, elementary, middle, and high school there, and graduated from Keio University. Chairman Shin also graduated from Aoyama Gakuin, completing kindergarten through university there. Although they attended different universities, both completed an MBA at Columbia University Graduate School in the United States.
Lotte Chairman Shin Dong-bin (left) and Shin Yoo-yeol, Head of Lotte Future Growth Office (second from right), are moving after meeting Bernard Arnault, Chairman of Louis Vuitton Mo?t Hennessy (LVMH), who visited Lotte Avenuel in Jamsil, Songpa-gu, Seoul, in March last year. Photo by Yonhap News
They also share the similarity of starting their careers at Nomura Securities. Chairman Shin joined Nomura Securities in Japan in 1981, while Shin Yu-yeol joined in 2008. This aligns with the management philosophy emphasized by Honorary Chairman Shin Kyuk-ho, who believed that "one must endure hardships under others to learn society." Chairman Shin joined Lotte Trading Company in Japan as a staff member in 1988, and Shin Yu-yeol joined as head of sales in 2020. Coincidentally, both joined Lotte at the age of 34 after leaving Nomura Securities.
Both received management training spanning Japan and Korea, starting in Japan's Lotte. Shin began in Korea as an assistant general manager at Lotte Chemical in 2022, while Chairman Shin started in 1990 as a general manager at Honam Petrochemical, the predecessor of Lotte Chemical. Both began their ties with Korean Lotte through Lotte Chemical.
After experiencing both Korean and Japanese Lotte, both have increased their influence within the group through new businesses. Chairman Shin became CEO of Korea Seven (7-Eleven), then a cutting-edge distribution business, in 1999. In 2000, he led the establishment of Lotte.com (now Lotte On), Korea's first online shopping mall, as its CEO.
Shin was promoted in December 2023 to Executive Director of Lotte Holdings' Future Growth Office and Global Strategy Office of Lotte Biologics. The Future Growth Office is a newly created organization responsible for managing new businesses such as bio and healthcare and discovering other ventures. Like his father, Shin is tasked with overseeing Lotte Group's future growth engines.
Father was a 'domestic first' pioneer... son enters a market with fierce competitors
Although the two have walked similar paths, their futures are expected to diverge. Chairman Shin was a 'pioneer,' while Shin Yu-yeol is taking the path of a 'challenger.'
Domestic convenience stores began with Lotte Seven opening its first store in front of Yaksu Market in Jung-gu, Seoul, in 1982, but it soon closed. The current convenience store era began with Korea Seven's 7-Eleven first store opened in 1989 at the Olympic Athletes' Village Apartments. Lotte.com, launched in 1996, was Korea's first online shopping mall. Chairman Shin's new businesses had to create paths that did not exist domestically.
In contrast, the bio and healthcare sectors that Shin is responsible for already have formidable competitors. Lotte Biologics has only two years of experience, competing against established companies like Samsung Biologics, SK Bioscience, and Celltrion. The healthcare sector is also dominated by strong players such as Samsung and Kakao.
Lotte is currently in urgent need of finding future growth engines rather than focusing solely on succession issues. According to the Fair Trade Commission, Lotte ranks 6th in fair asset standards. Its core businesses, including distribution and chemicals, are facing difficulties. The gap with POSCO, ranked 5th in the business world, is widening, putting Lotte's re-entry into the top 5 in jeopardy.
Shin's challenge is to prove management capabilities... succession expected to follow naturally if proven
In this situation, Shin's task is to prove his management capabilities in the bio and health sectors. Bio is a core new growth engine for Lotte, which has set a vision to become a global top 10 bio contract development and manufacturing organization (CDMO) by 2030.
Lotte plans to invest 3 trillion won by 2030 to build the 'Lotte Bio Campus,' including three mega plants in Korea. Each plant will produce 120,000 liters of antibody drugs and add small-scale fermenters and finished drug facilities for clinical material production.
According to this plan, Lotte Biologics will hold a groundbreaking ceremony for its Songdo bio plant (large-scale production facility) on the 3rd of next month and begin full-scale construction. To support this, Lotte Holdings, where Shin serves as Future Strategy Director, announced on the 24th that it will invest 120 billion won in Lotte Biologics, concentrating the group's resources.
The distribution industry is paying attention to Shin's focus on new businesses. An industry insider said, "The business Shin is in charge of is important not only for succession but also because Lotte's future depends on it. If he can achieve results here, the succession process will naturally follow, and the group is expected to provide substantial support."
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