High-Intensity Personnel Overhaul Continues Amid Emergency Management
All Four Vice Chairmen Step Down
Third-Generation Owner Shin Yooyeol Appointed Co-CEO of Biologics
HQ System Abolished, Board-Centered Responsible Management Strengthened
Lotte Group, which is currently maintaining an emergency management system, has carried out a major personnel overhaul for the second consecutive year by replacing one-third of all its CEOs. Shin Youl, the eldest son of Chairman Shin Dongbin and a third-generation member of the founding family, will take on the role of co-CEO of Lotte Biologics, which is considered a future growth engine for the group, stepping up as a key management leader.
On the morning of the 26th, Lotte held a board meeting and announced its regular executive appointments for 2026. Following last year’s unprecedented large-scale personnel overhaul-where 21 out of 60 CEOs, or 36%, were replaced after liquidity concerns emerged at the end of the year-the group has continued its strong focus on innovation in this year’s appointments. The main directions can be summarized as: ▲ organizational changes centered on strengthening execution capabilities ▲ fostering younger leadership through generational change ▲ appointing core talent based on performance and ability.
20 CEOs Replaced at Major Distribution and Construction Affiliates... Vice Chairmen Step Down
In this year’s executive appointments, Lotte replaced 20 CEOs, accounting for one-third of all CEOs. Four vice chairmen-Lee Dongwoo, CEO of Lotte Holdings; Lee Younggu, Head of Lotte Food Business Group; Kim Sanghyun, Head of Lotte Retail Business Group; and Park Hyuncheol, CEO of Lotte Construction-will all step down from their posts. It is reported that these four vice chairmen decided to retire to help spread a culture of innovation centered on younger and newer leadership.
With half of all executives over 60 retiring, the role of Executive Vice President Shin Youl, who is at the center of this generational shift, has been expanded. As Head of the Future Growth Division at Lotte Holdings, Shin has led the group’s global business and new business strategies. Through this personnel reshuffle, he will serve as co-CEO of Lotte Biologics alongside Park James, jointly leading one of the group’s key new businesses in the bio sector. He will also take on a major role in the newly established Strategy Control organization at Lotte Holdings, spearheading business innovation and the transformation of the group’s business portfolio.
Shin Youl, Co-CEO of Lotte Biologics. Provided by Lotte
Two executives were promoted to president in this round of appointments. Park Doohwan, Head of HR Innovation at Lotte Holdings, was promoted to president in recognition of his strong leadership in introducing Korea’s first job-based HR system at a major conglomerate and enhancing productivity across the group. Park joined Lotte Group’s Planning and Coordination Office in 1992 and has since served as Head of Planning at Lotte Card and Head of Sales & Marketing, before taking charge of HR Innovation at Lotte Holdings in 2022, where he has driven HR innovation and improved group productivity.
Cha Woochul, who led Lotte GRS, was promoted to president and nominated as CEO of Lotte Mart and Super. After joining Lotte Confectionery in 1992, Cha held various positions, including Head of Improvement at Lotte Policy Headquarters and Head of Management Improvement Team 1 at Lotte Holdings, and has served as CEO of Lotte GRS since 2021. During his tenure at Lotte GRS, he was recognized for improving profitability in existing businesses, strengthening competitiveness in new businesses, and expanding global operations. He is expected to lead the integrated management of Lotte Mart and Super, stabilize the e-grocery business, and expand global operations focused on Southeast Asia.
New talent expected to drive future performance has been appointed to key affiliates in distribution, construction, and chemicals. For Lotte Department Store, Jung Hyunseok, Head of the Outlet Business Division, was promoted to executive vice president and nominated as CEO. Jung joined Lotte Department Store in 2000 and has served as manager of the Jungdong and Maldong Busan branches. From 2020 to 2024, he was CEO of FRL Korea, where he strategically responded to unfavorable market conditions and successfully led the business, making him the right person to drive brand differentiation in line with changing customer trends. Born in 1975, Jung is now the youngest CEO in the history of Lotte Department Store.
Seo Jungho, Head of the Innovation Promotion Team at Lotte Wellfood, was nominated as CEO of Lotte Wellfood. Seo joined as Head of Innovation Promotion at Lotte Wellfood in July and has since led business transformation and management diagnosis. Going forward, he will continue to strengthen existing brand competitiveness, improve long-term profitability, and discover new businesses for future growth.
Additionally, Oh Ilgeun, recognized for his expertise in real estate development and business portfolio advancement, was promoted and nominated as CEO of Lotte Construction. Oh is considered the right person to quickly restore Lotte Construction’s financial soundness, which has been weakened by the PF crisis. Choo Daesik, who has experience in both online and offline distribution, was promoted and appointed as CEO of Lotte e-Commerce, having previously led restructuring and turnaround strategies for the e-commerce business unit.
Lotte Holdings Reorganized into a Practical Organization... HQ System Abolished
Lotte Holdings, which is responsible for discovering future businesses and advancing the business portfolio, will be reorganized into a more practical structure. Ko Jungwook and Noh Junhyeong have been nominated as co-CEOs of Lotte Holdings. The two co-CEOs will divide responsibilities between finance and management, and strategy and planning, running the organization based on expertise and execution. Choi Youngjun, Head of Finance Team 2 at Lotte Holdings, has been nominated as Head of Financial Innovation, while Hwang Minjae, Executive Vice President and CEO of Lotte Chemical Advanced Materials, has been nominated as Head of Management Innovation.
To respond quickly to the rapidly changing business environment, Lotte will also strengthen its affiliate-centered system of responsible and independent management. The group will abolish the business headquarters system that has been in place for the past nine years. Previously, Lotte introduced the Business Unit (BU) system in 2017 and the Headquarter (HQ) system in 2022 to facilitate joint strategy development and business synergy among related affiliates. However, Lotte’s chemical division will abolish HQ and, depending on strategic needs, reorganize as the Portfolio Strategy Office (PSO), operating a form of governance that integrates business units. As a functional organization, the Lotte Chemical PSO will play a role in creating synergy by connecting and coordinating the short- and long-term strategies and business portfolios of chemical affiliates.
Appointment of Talent Based on Expertise, Regardless of Age or Gender
Lotte applied its philosophy of a job-based HR system to this year’s executive appointments as well. Individuals who demonstrated outstanding results through job expertise and proactive innovation were identified and promoted. For example, Kim Songgi, born in 1960 and Head of Culinary R&D at Lotte Hotel, was promoted to executive director at the age of 65 in recognition of his achievements as a master chef of Korea, including successfully overseeing the banquet at the Asia-Pacific Economic Cooperation (APEC) summit held in Gyeongju this year.
Younger leadership was also promoted. The number of new executives reached 81, a 30% increase from the previous year, and the number of fast-track promotions also rose significantly. Hwang Hyungseo, Head of Marketing at Lotte e-Commerce; Oh Hyunsik, Head of AI Tech Lab at Lotte Innovate; Kim Songho, Head of the PE Team at Lotte Chemical Basic Materials; and Baek Jiyeon, Head of Investment Strategy at Lotte Corporation, were all promoted to executive positions in recognition of their expertise, regardless of years of service.
The principle of appointing female talent was also maintained. Four female executives were promoted in this round, and eight women-accounting for 10% of all new executives-were newly appointed. Jo Hyungju, Head of Luxury at Lotte Department Store; Shim Mihyang, Head of Business Innovation at Lotte Chemical Basic Materials; Son Yukyung, Head of Development at Lotte Corporation; and Oh Kyungmi, Head of DT at Lotte Members, were all promoted to executive director.
A Lotte official stated, "In order to enhance swift change management and execution capabilities amid an uncertain business environment, we will continue to maintain the principle of performance-based executive appointments and recruitment of external talent as needed."
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