LOTTE Group is expected to carry out its 2026 regular executive appointments as early as on the 26th. The group had initially planned to hold a board meeting on the 27th and implement the regular reshuffle effective Dec. 1, but the timing has reportedly been moved up by one day.
According to the business community on the 25th, major LOTTE affiliates will hold back-to-back board meetings on the 26th. LOTTE Group has held boards of the holding company and affiliates in sequence at the end of each year to finalize its year-end appointments.
With an emergency management stance continuing across the group, expectations are that this year's appointments will also maintain a sweeping reform drive. In particular, attention is on what changes will come at key affiliates such as LOTTE Construction and LOTTE Wellfood, which are struggling with weak results.
At the end of last year, LOTTE carried out the largest-ever streamlining of executives. It reduced the total number of executives by 13% from a year earlier and replaced 21 CEOs, or 36%. By placing CEOs born in the 1970s at the forefront, it shook up the seniority-centered culture while prompting a large number of executives in their 60s to step down, accelerating a generational shift.
There were big changes in the chemical group as well. LOTTE Chemical newly appointed President and Head of Business Lee Young-jun, and although third-quarter results improved, assessments say there are still many issues to resolve.
Organizational slimming is also continuing at distribution and food affiliates. Korea Seven implemented a voluntary retirement program this year, following last year. LOTTE Chilsung Beverage, LOTTE Wellfood, and LOTTE Members carried out their first voluntary retirement programs with restructuring characteristics since their founding.
As promotions of "third- to fourth-generation young owners" accelerate in the business world, another point to watch is whether Shin Yoo-yeol, executive vice president of LOTTE Corporation (head of the Future Growth Office and head of Global Strategy at LOTTE Biologics), the eldest son of Chairman Shin Dong-bin, will be named for promotion to president in this reshuffle.
Meanwhile, other major distribution groups wrapped up their personnel moves a month earlier than year-end. Shinsegae Group on Sept. 26 and CJ Group on Oct. 17 each announced major appointments, including CEO changes, speeding up the pace of change.
Hyundai Department Store Group announced its appointments on Oct. 30, around the usual time, and kept most affiliate CEOs in their posts.