2026 First-Half VCM Held at Lotte World Tower
Over 80 Key Affiliate Leaders in Attendance
Chairman Shin Dongbin Calls for "Strengthening Fundamental Competitiveness in Core Businesses"
Profitability-Focused Management and Emphasis on Qualitative Growth
"In order to overcome challenging circumstances and achieve further growth for the group, strengthening our business competitiveness must come first."
Shin Dongbin, Chairman of Lotte Group, made this request to the company’s executives at the 2026 First Half Value Creation Meeting (VCM, formerly the Presidents' Meeting) held at Lotte World Tower in Songpa-gu, Seoul, on the afternoon of January 15, 2026. This comes as the group anticipates an unfavorable business environment this year, given the recent slowdown in growth and the imbalance in its business portfolio.
Shin Dongbin, Chairman of Lotte Group, is attending the "57th Korea-Japan Business Meeting" held at Lotte Hotel in Jung-gu, Seoul on the 27th. 2025.05.27 Photo by Yoon Dongju
The VCM is a biannual executive meeting held by Lotte Group in the first and second halves of each year. This year’s first-half VCM was attended by more than 80 participants, including Ko Jungwook and Noh Junhyung, Co-CEOs and Executive Directors of Lotte Holdings, as well as the heads of affiliates. Shin Yooyul, the eldest son of Chairman Shin, has also been attending the VCM since 2023. He serves as Head of Future Growth at Lotte Holdings and Co-CEO of Lotte Biologics.
Typically, the first-half VCM reviews the previous year’s business performance and shares management goals for the current year. This year’s first meeting, which lasted about four hours, was reportedly conducted in a consistently serious atmosphere. Chairman Shin declared a major shift in management policy, focusing on qualitative growth. He emphasized the need to manage key performance indicators centered on profitability, enhance corporate value, and lay the groundwork for sustainable growth.
The meeting also included in-depth discussions on strategic rebalancing by business unit. For each sector, the following priorities were identified: enhancing core brand value for food, maximizing customer satisfaction in retail through store strategies tailored to each commercial district, and for chemicals, prompt restructuring in line with government policy and portfolio advancement focused on specialty products. The establishment of a robust risk management system to prevent information security and safety incidents was also discussed.
To this end, Chairman Shin presented the following management policies that must be implemented this year: a transition to profitability-based management, swift and proactive decision-making, and vigilance against arrogance while focusing on the essence of the business. He stressed, "We need to strengthen our fundamentals by prioritizing profitability and return on invested capital (ROIC) through efficient investment, rather than simply pursuing top-line growth. Investments should be made based on clear principles and standards, and even for ongoing projects, we must continuously assess their validity and adjust details as needed."
He also called for prompt and proactive decision-making. Last year, Lotte abolished its headquarters (HQ) system and strengthened responsible management at its affiliates in the 2026 executive appointments, aiming to build leadership focused on swift change management and execution. Chairman Shin urged CEOs to consider both the company’s long-term vision and current issues, and to foster a corporate culture where employees can autonomously innovate and grow.
Chairman Shin cautioned against arrogance stemming from past successes, urging a renewed focus on the essence of the business. He added, "Small, customer-centric innovations can add up to significant change. Please take responsibility in understanding customer needs and thinking about what efforts are required to address their inconveniences."
He concluded, "If we do not break away from what is familiar and embrace change, we cannot solve the problems we currently face. We must quickly pursue innovation to strengthen our fundamental competitiveness, moving away from past methods of success."
On the afternoon of the 15th, Jung Hyunseok, Vice President and CEO of Lotte Department Store, attended the 2026 First Half Value Creation Meeting (formerly the Presidents' Meeting) held at Lotte World Tower in Songpa-gu, Seoul. Photo by VCM Joint Press Corps
Meanwhile, on the same day, the heads of Lotte’s major affiliates began arriving one by one at the Lotte World Tower office building from around 1 p.m. to attend the VCM. In particular, newly appointed CEOs, making their first appearance following a major organizational restructuring in November last year, drew attention. Jung Hyunseok, CEO of Lotte Department Store, attended his first VCM following the regular executive appointments, entering Lotte World Tower with a bright expression at around 12:30 p.m. Other key affiliate leaders, including Seo Jungho, CEO of Lotte Wellfood, Kim Hongcheol, CEO of Korea Seven, and Kim Deokhee, CEO of Daehong Communications, also arrived in succession.
When asked by reporters about their artificial intelligence (AI) strategies and key management plans for the year, most remained tight-lipped. However, Lee Wontak, CEO of Lotte GRS, commented on the AI strategy, saying, "We will strengthen food tech." Kim Jongyeol, CEO of Lotte Cultureworks, responded to questions about this year’s management strategy by saying, "We will read trends and lead the world in advance."
Shin Dongbin, Chairman of Lotte, is paying tribute by placing flowers at the bust of Shin Kyukho, the founder of Lotte, located on the first floor of Lotte World Tower on the 15th. Provided by Lotte Holdings
Earlier in the day, before the VCM, Chairman Shin Dongbin and his eldest son, Vice President Shin Yooyul, arrived early at the first floor of Lotte World Tower to attend a memorial ceremony marking the sixth anniversary of the passing of Lotte’s founder, the late Shin Kyukho. The flower tribute began with Chairman Shin Dongbin, followed by Ko Jungwook, CEO of Lotte Holdings, Noh Junhyung, CEO of Lotte Holdings, Lee Youngjun, Head of Lotte Chemical Group, and finally Shin Yooyul, Head of Future Growth at Lotte Holdings.
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