Chair Shin Dong-bin of Lotte said in a New Year's message to employees on the 2nd, "Let's create a new history of Lotte together based on growth and innovation." He also called for a fundamental overhaul of the group's core businesses and a proactive response to change.
Shin began the message by saying, "I offer my thanks to the employees who delivered meaningful global results in core business areas such as chemicals, food, and retail despite last year's difficult business environment." He then highlighted last year's overseas achievements, including LOTTE Chemical's construction of a large petrochemical complex in Indonesia, LOTTE Wellfood's launch of a new plant in Pune, India, Lotteria's expansion into the United States and Malaysia, and the strengthening of the landmark position of Vietnam's Lotte Mall West Lake Hanoi Mall.
Shin said, "The business environment we face this year, including the three highs of high inflation, high interest rates, and a strong dollar, geopolitical risks, and demographic shifts, demands a fundamental overhaul of the group's core businesses." He also stressed that efforts in growth and innovation born of thorough self-reflection are needed for the group's qualitative growth.
To overcome the immediate challenges, Shin called for "creating differentiated results based on autonomy," "preemptively responding to the tide of change," and "completing innovation accompanied by strong execution." He said, "An organization grows and delivers differentiated results when its members identify tasks on their own and solve them," and urged, "Keep in mind that individual competitiveness is the very source of corporations' competitiveness, and grow by boldly breaking past conventions."
He also urged proactive responses to change. Shin said, "We cannot grow with a passive, follow-the-change attitude," adding, "From a PEST (macroeconomic environment analysis) perspective, we must anticipate the tide of change and reexamine our strategies and ways of working." He also said, "Let's internalize AI, a powerful tool, as a core competitiveness and harness its potential to lead change."
Shin said, "We must complete innovation in our existing core businesses on the basis of strong execution." He continued, "We have spoken of the need for innovation, but it has not led to visible results," and urged, "Let's narrow the gap between planning and execution and make this year the one that lays the groundwork for sustainable growth."
Shin said, "At the foundation of growth and innovation must be the pledge that 'we will deliver the best value we can offer to customers,'" adding, "In the process of thinking hard and acting to realize this pledge, our fundamental competitiveness will become even more solid."
Finally, Shin wrapped up the New Year's message by encouraging employees, saying, "Believing in the group's underlying strength, let's not fear challenges and change, but move forward with confidence and write a new history of Lotte together."