[Gyeongju APEC] Sanghyun Kim, Head of Lotte Distribution Group: "Digital Transformation Is a Tool for Shopping Experience Innovation"

Presentation at CEO Summit Session
Highlighting Advantages of Digital Technology, Including AI-Based Personalized Advertising and Operational Efficiency
"A Path to Simultaneously Enhance Customer Experience and Corporate Performance"

"Digital technology is not a tool to replace offline stores, but an instrument of innovation that creates new shopping experiences."

Kim Sanghyun, Vice Chairman and General Manager of Lotte Distribution Group, made this statement during his presentation at the "Digital Transformation & Retail Efficiency" session at the 2025 Asia-Pacific Economic Cooperation (APEC) CEO Summit, held at Gyeongju Arts Center on the 29th. He said, "Despite the rapid growth of e-commerce, over 70% of retail sales in Asia still take place in offline stores."

Kim Sanghyun, Vice Chairman and General Manager of Lotte Distribution Group, is giving a presentation in the "Digital Transformation & Retail Efficiency" session at the 2025 Asia-Pacific Economic Cooperation (APEC) CEO Summit held at Gyeongju Arts Center on the 29th. Photo by Joint Press Corps

He further emphasized that Lotte Distribution Group is driving customer experience innovation even before customers enter the store, leveraging more than 12,000 stores nationwide with a variety of digital solutions such as AI-based product quality analysis, multilingual information kiosks, AI sommeliers, 3D virtual interior consulting solutions, smart carts, and unmanned payment systems.

Kim explained, "With AI-based smart sensors, heat maps, and digital signage, it is now possible to deliver personalized advertisements even in offline stores. This is evolving into data-driven joint marketing with partner brands and new advertising revenue models." He added, "Such digital transformation not only enhances customer experience but also significantly improves operational efficiency and reduces costs. Many retailers are using AI-based sensors and digital analytics tools for real-time inventory management, electronic shelf labels, and efficient display management with digital planograms, thereby increasing workforce efficiency and improving work productivity."

Kim also identified three key priorities that distribution companies must consider during digital transformation: strengthening personal data protection and security, regulatory reform and public-private cooperation, and improving sustainability.

He stressed, "Digital transformation is fundamentally changing not only the 'what' but also the 'how' of retail. We must provide customers with more convenient and reliable services through AI and data technologies, while also actively pursuing ESG (Environmental, Social, and Governance) values such as reducing carbon emissions, minimizing food waste, and saving packaging materials."

Furthermore, he stated, "Digital transformation is not just a matter of technology, but a path to simultaneously enhance customer experience and corporate performance. Technology does not replace humans, but rather strengthens more meaningful human connections. Lotte Distribution Group will realize people-centered values through technology and grow as the top shopping destination sought after by customers, driving changes that customers can truly feel."