Shin Dong-bin, chairman of Lotte Group, called for high-intensity reform to escape the difficulties faced by Lotte Group at the first Value Creation Meeting (VCM) of the year held on the 9th.
According to Lotte Group, Shin said at the VCM held at Lotte World Tower in Sincheon-dong, Songpa-gu, Seoul, that representatives of each business unit and affiliated companies should efficiently utilize the assets of the group through 'selection and concentration' to overcome difficulties.
The VCM is an important venue for discussing the management direction of Lotte Group. Each year, key executives, including Chairman Shin, his eldest son Shin Yoo-yeol, head of Future Growth Division (vice president) at Lotte Holdings, Lee Dong-woo, vice chairman of Lotte Holdings, and representatives from each business unit and presidents of subsidiaries, attend the meeting, totaling around 80 participants.
At this year's first VCM, Shin conducted the meeting in a solemn atmosphere, assessing that 'last year was the most difficult year in the group's history.'
He added, 'Although we are implementing various measures, such as the sale of tangible assets and asset re-evaluation, to restore market confidence quickly, we must enhance our fundamental business competitiveness to improve revenue for a fundamental solution.'
Since the liquidity crisis rumors emerged late last year, Lotte has been accelerating restructuring of its business and improving its financial structure. Lotte is establishing a medium to long-term strategy focused on strengthening its core business while making concentrated investments in new businesses, such as biotechnology and artificial intelligence. It is expected to speed up its business restructuring efforts to support this.
Chairman Shin also noted on this day, 'In an era where crisis has become a norm, the fundamental cause of the difficulties Lotte faces is not the external environment but the decline in competitiveness of our core business.'
He further stated, 'If we do not reform and innovate now, we will not survive,' urging the CEOs, 'Even if it is a business with a heritage that led the group's growth in the past, please redefine the business model from a new perspective and attempt business adjustments.'
Chairman Shin identified three management policies that CEOs must adhere to in order to reform Lotte Group this year.
He emphasized the need to break away from habitual methods to innovate business structures and work processes and to establish challenging goals. He also did not forget to mention that Lotte Group possesses the genes to overcome adversity.
Finally, Chairman Shin remarked, 'Considering the domestic economic and population outlook, pioneering overseas markets is the most important goal for the group's future growth,' and added, 'We must keep in mind that now is the last opportunity for change and turn this crisis into a major innovation.'