The LOTTE Group held its first half-year Value Creation Meeting (VCM) on the 9th. It is the first group management strategy meeting held after experiencing a liquidity crisis at the end of last year. Perhaps due to the atmosphere within the group, about 80 representatives from each affiliate present at the VCM remained silent throughout the meeting. Shin Dong-bin, chairman of LOTTE Group, instructed them to create a breakthrough through selection and concentration to overcome the difficulties faced by the group, and to implement high-intensity reform that will serve as a turning point for a major innovation.
The VCM took place under the chairmanship of Shin at LOTTE World Tower in Songpa District, Seoul, from 2 p.m. for approximately four hours. About 80 participants included the CEO of LOTTE Holdings, Deputy Ministers, heads of business units, and representatives of subsidiaries. Notably, Chairman Shin was reported to have instructed attendees to arrive early at the meeting since he would be attending the 'Artificial Intelligence (AI) Project Showcase' beforehand. The nine affiliates, including LOTTE INNOVATE and Daehong Planning, that participated in this showcase introduced AI innovation cases within the group and showcased excellent AI activities.
The representatives of LOTTE Group affiliates maintained a serious expression and remained silent in response to reporters' questions even before the VCM began. Jeong Jun-ho, CEO of LOTTE Department Store, only maintained a stern face and did not say a word to the reporters' inquiries. Similarly, Nam Chang-hee, CEO of LOTTE HIMART, and Kang Sung-hyun, CEO of LOTTE Mart, briefly responded to inquiries about 'what topics would be discussed' by stating, 'We will discuss it later,' and quickly walked to the meeting room. Other attendees, including Tamatsuka Kenichi, CEO of Japan's LOTTE, Park Ik-jin, CEO of LOTTE eCommerce Division (LOTTE ON), Kim Dong-ha, CEO of LOTTE Duty Free, and Lee Don-tae, head of the design strategy center at LOTTE Holdings, also did not comment on the planned agenda or business direction.
During the VCM, Chairman Shin addressed the representatives of each affiliate, saying, 'Keep in mind that now is the last opportunity for change and you must turn this crisis into a major innovation,' and added, 'While we are implementing various measures such as the sale of tangible assets and asset re-evaluation to restore market confidence as soon as possible, to fundamentally resolve the situation, we need to enhance the fundamental competitiveness of our business to increase revenue.'
At the same time, Chairman Shin pointed out the decline in competitiveness of core businesses as the fundamental cause of the group's crisis. He stated, 'If we do not innovate and reform now, we will not be able to survive,' and urged, 'Even if it is a business that has the heritage that led the group’s growth in the past, please redefine the business model from a new perspective and attempt to adjust the business.'
The management directives presented by the chairman on that day include ▲ establishing challenging goals, ▲ innovating business structure, and ▲ formulating global strategies. He particularly urged a shift away from habitual methods to innovate business structure and work processes for fundamental reform. He emphasized, 'It is necessary to set challenging goals and concrete plans and to strive hard to achieve them' and noted, 'Considering the domestic economic and demographic outlook, exploring overseas markets is the most important goal for the growth of the group. Please analyze overseas markets closely and establish differentiated business strategies to build competitiveness in the global market.'
He continued, 'Our LOTTE Group has the DNA to overcome adversity, having overcome numerous crises such as the International Monetary Fund (IMF) crisis and the COVID-19 pandemic,' and encouraged, 'If all employees, including the CEOs, work together, we can overcome any crisis.'
Shin Yoo-yeol, who was promoted from managing director to vice president in the regular personnel reshuffle last November and is also the head of the future growth department at LOTTE Holdings and the global strategy department at LOTTE Biologics, attended the VCM and reportedly listened attentively to his father, Chairman Shin Dong-bin's remarks without making any special comments. Having attended the VCM annually since 2023, Vice President Shin returned home immediately after completing the CES 2025 schedule held in Las Vegas on the 7th (local time) and attended the VCM without delivering any separate remarks.
The serious atmosphere continued even after the VCM ended. The situation was markedly different compared to previous years when participants left after the meeting with lighter steps, responding to reporters' questions. According to LOTTE, immediately after the VCM concluded, Chairman Shin and the representatives of the affiliates descended in an internal elevator right after finishing their meal at LOTTE World Tower. The approximately 20 representatives, who took the internal elevator that is inaccessible to outsiders, only wore stern expressions as they quickly moved into the elevator. It was reported that some representatives, finding the reporters' questions burdensome, left through the internal passage immediately after completing their meal.