[New Year's Address] Shin Dong-bin, Lotte Chairman, "Intensive Reform... Restoring Core Business Competitiveness"

Global Uncertainty and Prolonged Domestic Slump
"This Year's Economic Situation Will Be More Difficult Than Ever"
Calls for Structural Reform and Strengthening Financial Soundness
Urges Business Innovation from Customer Perspective and AI Achievements

"We must restore the competitiveness of our core businesses to overcome the current crisis and establish a foundation for sustainable growth."

On the 2nd, Lotte Chairman Shin Dong-bin emphasized this in his New Year's message to the group’s employees, stating, "This year is expected to be more challenging than ever due to expanding uncertainties and prolonged stagnation in the domestic market." He also urged a rigorous reform throughout the year for Lotte to meet market expectations and achieve renewed growth.

Shin Dong-bin, Chairman of Lotte. Provided by Lotte Group

Chairman Shin first pointed out, "We must lay the groundwork for a leap forward through structural improvement," adding, "We need to proactively establish financial strategies and enhance financial soundness based on them." To increase individual work productivity, he requested, "Please review whether there are any unnecessary tasks or factors hindering efficiency, and devote all efforts to building a foundation for regaining a leading position."

He also stressed business innovation from the customer’s perspective. Chairman Shin said, "Customers are the foundation of our existence, and the businesses that will secure the group’s future must meet customer demands," urging, "Let us thoroughly review our businesses from the customer’s viewpoint, carefully consider new values we can offer to customers, and enhance execution to materialize these businesses."

Furthermore, in the global market, he asked to contemplate what innovations and differentiated values only Lotte can present and to find ways to enhance them. He also emphasized the need to focus on AI internalization in this era of artificial intelligence, including creating business models and reducing costs.

Chairman Shin stated, "We have accumulated a DNA that turns crises into opportunities by overcoming numerous obstacles," and stressed, "Change and innovation involve fear and pain, but overcoming them will allow us to grow further and reach our goals."

Full Text of Chairman Shin Dong-bin’s New Year Message

Dear Lotte family, the year 2025, Eulsa year, has dawned.

I would like to express my gratitude to all employees who quietly did their best in their respective positions throughout the eventful last year. I wish you a happy new year and hope that all your wishes come true this year.

This year, the global economy is expected to be more challenging than ever due to expanding uncertainties worldwide. Amid ongoing global geopolitical tensions, market volatility is also increasing due to changes in major countries’ protectionist trade and commerce policies.

The domestic economy also faces a bleak outlook. The stagnation of the domestic market due to a low-growth trend is expected to prolong, and demographic changes caused by low birth rates and aging will accelerate further. Without innovation amid these significant economic and social changes, we may face even greater crises.

Dear employees, our group is seeking change by advancing our business portfolio and increasing decision-making speed and execution power based on organizational streamlining. However, to meet market expectations, more intensive reform is required this year.

We must quickly restore the competitiveness of our core businesses to overcome the current crisis and establish a foundation for sustainable growth. I would like to share a few requests to this end.

First, we must lay the foundation for a leap forward through structural improvement. To do this, we need to proactively establish financial strategies and conduct business based on them to enhance financial soundness.

Also, we must focus on our assigned tasks to increase productivity. Please identify and eliminate unnecessary tasks or factors that hinder efficiency, and based on this, all affiliates should devote their full efforts to building a foundation for regaining a leading position.

We must innovate our businesses from the customer’s perspective. Customers are the foundation of our existence, and the businesses that will secure the group’s future must meet customer demands.

Please thoroughly review all businesses from the customer’s perspective and continuously seek new values to offer customers. Let us carefully consider and enhance execution to materialize these businesses.

Also, please consider what innovations and differentiated values only Lotte can present in the global market. By focusing on localization and providing services tailored to each region’s culture and customers, we must enhance our brand value.

Along with this, please focus on AI internalization as we enter the full-fledged AI era. Last year, we laid the groundwork for AI internalization in various areas. This year, we must work harder to achieve meaningful results such as creating business models and reducing costs.

Dear employees, we have accumulated a DNA that turns crises into opportunities by overcoming numerous obstacles. Let us thoroughly analyze the current crisis and respond swiftly so that it becomes a stepping stone for a leap forward.

Change and innovation involve fear and pain, but overcoming them will allow us to grow further and reach our goals. Let us all do our best in our respective positions this year.

I thank you for your endless dedication, and I wish that joy and happiness fill every home in 2025.