Lotte Group Executive Meeting for Second Half on 19th
About 80 Attendees Including Eldest Son Shin Yuyeol Executive Director
"Strengthen Competitiveness by Utilizing AI in Existing Businesses"
"Must Generate Stable Profits in Global Business"
"Companies that do not innovate for the future will eventually lose their leading position."
Shin Dong-bin, Chairman of Lotte, said this to CEOs at the '2024 Second Half Lotte VCM (Value Creation Meeting, formerly the Presidents' Meeting)' held on the 19th at Lotte Hotel World in Jamsil, Seoul, quoting the "Innovator's Dilemma." He emphasized that in order to overcome the group's sluggishness amid crisis and enhance corporate value, efforts to strengthen fundamental competitiveness in existing businesses such as food, distribution, and chemical sectors are necessary. Chairman Shin also urged, "Bold innovation is needed to respond to changes in customers and markets," adding, "Please actively consider AI (artificial intelligence) as a means and swiftly pursue related fundamental strategic tasks."
Lotte Chairman Shin Dong-bin is listening to the technology explanation of 'Retinal,' a startup producing high-resolution AR glasses, at the '2024 Lotte Investment Showcase' held prior to VCM. [Photo by Lotte Holdings]
As management policies for the second half aimed at enhancing corporate value, Chairman Shin ordered not only strengthening the fundamental competitiveness of existing businesses but also ▲ stable profit generation in global businesses ▲ expansion of high value-added businesses for future growth ▲ strengthening financial soundness management. In particular, regarding global business, Chairman Shin urged to "pursue it sincerely," and reportedly introduced the India and Southeast Asia businesses, which achieved meaningful results in the first half of this year.
Chairman Shin then cited the group's efforts to discover new growth engines such as bio CDMO, electric vehicle battery materials, and electric vehicle charging service businesses, urging the expansion of high value-added businesses throughout the group. He also said, "From a financial perspective, external risks such as high interest rates and geopolitical issues have increased," adding, "More meticulous and thorough feasibility reviews are necessary when making major investment decisions."
Chairman Shin also emphasized the leadership of CEOs during the meeting. He said, "CEOs must take unlimited responsibility for company management and prepare for the future with a challenging attitude that does not fear change." He continued, "Our role is to build companies that sustain growth by overcoming unexpected crises," and urged, "Raise awareness to achieve management goals and make a leap forward despite uncertainties in the management environment."
Shin Yu-yeol, Executive Director and Head of Future Growth at Lotte Holdings, is attending the Lotte Group's second half VCM (Value Creation Meeting, formerly the Presidents' Meeting) held on the afternoon of the 19th at Lotte Hotel World in Songpa-gu, Seoul. [Image source=Yonhap News]
Regarding the 'Lotte Investment Showcase' held prior to the meeting, Chairman Shin said, "Discovering new business opportunities through promising startup investments means securing seeds for new growth," and added, "Open innovation linked with startup innovation DNA is necessary." Toward the end of the meeting, Chairman Shin also urged the CEOs, saying, "We have a history and passion of overcoming numerous crises in the past," and "Take the lead in creating a group that sustains growth by demonstrating strong execution power."
The VCM, held from 1 p.m. that day, was attended by about 80 people including Chairman Shin, the CEO and heads of Lotte Holdings, general representatives of business groups, and representatives of affiliates. The representatives of each affiliate who attended the meeting generally refrained from speaking much and only briefly shared their opinions on current issues. Kim Sang-hyun, Vice Chairman of Lotte Shopping, stated, "We will speedily promote 'Transformation 2.0' with the goal of simultaneous growth in sales and profits this year." Shin Yoo-yeol, Executive Director of Future Growth at Lotte Holdings, who has been expanding management efforts mainly in new growth engines such as bio, only smiled in response to questions about new business progress and headed to the meeting room. Shin, the eldest son of Chairman Shin and an executive director, reportedly did not make any separate remarks during the meeting.
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