[New Year’s Address] Lotte Chairman Shin Dongbin: "Thorough Self-Reflection... Achieving Growth and Innovation"

“Emphasizing Differentiated Performance,
Proactive Response, and Completion of Innovation”

Shin Dongbin, Chairman of Lotte Group, delivered his New Year's address on January 2, stating, "We need efforts for growth and innovation that stem from thorough self-reflection," and added, "Let all executives and employees work together to create a new chapter in Lotte's history."

Shin Dongbin, Chairman of Lotte Group.

Chairman Shin assessed this year's business environment for the group, saying, "With the triple challenges of high inflation, high interest rates, and high exchange rates, along with geopolitical risks and demographic changes, fundamental structural improvements are required in the group's core businesses."

He then emphasized that, to overcome the difficulties facing Lotte Group, it is necessary to: ▲ generate differentiated results based on autonomy ▲ proactively respond to the flow of change ▲ and achieve 'completion of innovation' accompanied by strong execution.

Chairman Shin stated, "An organization grows and achieves differentiated results when its members independently identify challenges and solve them," and urged, "Remember that individual competitiveness is the very source of corporate competitiveness, and boldly break away from past practices to achieve growth."

He stressed the importance of proactive response in an era where uncertainty has become the norm. He said, "We cannot achieve growth with a passive attitude that simply follows change," and added, "We must anticipate trends from the perspectives of politics, economy, society, and technology (PEST), and re-examine our strategies and ways of working."

Chairman Shin identified artificial intelligence (AI) as a tool for change, stating, "Let us internalize AI, a powerful tool, as a core competitiveness and utilize its potential to lead change."

He also noted, "Although we have consistently discussed the need for innovation, it has not led to visible results," and called for, "Bridging the gap between planning and execution, and making this year a foundation for sustainable growth."

Chairman Shin further emphasized that the foundation of growth and innovation must be a commitment to delivering the highest value to customers. He encouraged executives and employees by saying, "Through the process of intense deliberation and action to realize this commitment, our fundamental competitiveness will become even stronger. Trusting in the group's capabilities, let us boldly face challenges and change, and confidently move forward together to write a new chapter in Lotte's history."