LOTTE Group will abolish the headquarter (HQ) system introduced at the end of 2021. The move follows criticism that the HQ system, adopted for faster decision-making, in reality only created unnecessary positions. Through this, LOTTE Corporation is seeking a hands-on organizational shift.
On the 26th, through regular executive appointments, LOTTE Group nominated President Ko Jeong-wook (59) and President Noh Jun-hyung (57) as co-CEOs of LOTTE Corporation. It is a step for LOTTE Corporation, which is tasked with discovering future businesses and advancing the business portfolio, to be reborn as a hands-on organization.
President Ko, as head of financial innovation at LOTTE Corporation, improved the group's financial soundness. President Noh, as head of management innovation at LOTTE Corporation, adjusted the group-wide business portfolio and accelerated innovation at affiliates. The two co-CEOs will run the organization based on expertise and execution by dividing it into two parts: finance and management control, and strategy and planning.
For head of financial innovation at LOTTE Corporation, Executive Director Choi Young-jun (55), head of Finance Team 2 at LOTTE Corporation, was nominated, and for head of management innovation at LOTTE Corporation, Executive Vice President Hwang Min-jae (54), CEO of advanced materials at LOTTE Chemical, was nominated.
LOTTE said it will strengthen responsible management centered on each affiliate to respond swiftly to a rapidly changing business environment. Going forward, each LOTTE affiliate will focus on enhancing the fundamental competitiveness of its core businesses based on autonomous and responsible management led by the CEO and the board of directors.
However, the LOTTE chemicals group will abolish HQ and, as needed strategically, change the organization to a PSO (Portfolio Strategy Office) to operate governance in a business-group integrated form. The LOTTE chemicals group PSO, as a functional organization, will play a role in creating synergies by linking and adjusting the short- and long-term strategies and business portfolios of the chemical affiliates, including consolidation.