Lotte Group Chairman Shin Dong-bin on the 15th brought together about 80 executives, including affiliate CEOs, to review second-half management strategy and mid- to long-term growth plans.
Lotte Group in the afternoon held the "2026 second-half VCM (Value Creation Meeting, formerly the presidents' meeting)" at Lotte World Tower in Jamsil, Songpa District, Seoul.
The VCM is the group's top management meeting attended by Chairman Shin, the Lotte Corporation CEO and Deputy Minister, business group heads, and major affiliate CEOs, and is held twice a year in the first and second halves.
Shin Yoo-yeol, the eldest son of the chairman and executive vice president serving as Lotte Corporation head of future growth, also attended. Executive Vice President Shin has sat in on the VCM since 2023. Starting this year, he is also serving as co-CEO of Lotte Biologics.
Kenichi Tamatsuka, head of Japan's Lotte Holdings, Jeong Hyeon-seok Lotte Shopping(023530) executive vice president and CEO of Lotte Department Store, Kim Dong-ha, CEO of Lotte Duty Free, and Seo Jeong-ho, CEO of Lotte Wellfood, among other key affiliate executives, arrived one after another starting around 12 p.m. When reporters asked about the AI strategy initiative emphasized by the chairman and plans to bolster competitiveness at each company, they did not offer substantive answers.
The core agenda of this second-half VCM is AI. Lotte reviewed the group-level AX (AI transformation) status and focused discussions on integrating AI into work innovation and decision-making, customer experience, and overall business operations.
An "AI agent exhibition" showcasing the group's AX progress and affiliate-specific use cases was also set up in the meeting hall. More than 10 AI agents in active use in the field were presented, including a voice- and motion-recognition AI assistant, as well as tools for price monitoring, demand forecasting, and global market outlook analysis.
For the first time, a foreign speaker was invited. Doug Stephens, a futurist and global management consultant, gave a lecture on changes in AI technology and shifts in the global market and retail environment.
Earlier, the chairman personally attended the "CEO AI Academy" on the on and emphasized the importance of AI transformation, lending support to the group's AX. At the first-half VCM in Jan., he emphasized "qualitative growth," calling for managing indicators with a focus on profitability and raising corporate value.
Following the lecture, Lotte Corporation co-CEOs Ko Jeong-wook and Noh Jun-hyung respectively presented the group's second-half management strategy and financial strategy. CEOs of major affiliates in the food, distribution, chemical, and hotel sectors also shared execution strategies to enhance business competitiveness.
They were said to have reviewed the results of business restructuring pursued so far and discussed execution strategies to improve second-half earnings. Lotte is reattempting the sale of Lotte Rental under the emergency management system that began at the end of 2024. Lotte Chemical(011170) is proceeding with the sale of non-core assets and adjustments to its business portfolio.
Affiliate performances are mixed. Lotte Shopping, backed by department store growth, increased foreign consumer spending, and strong overseas operations, saw operating profit in the first quarter rise 70.6% from a year earlier. Lotte Chilsung Beverage(005300), driven by expanded sales of zero-sugar beverages and new alcoholic drinks and by overseas business growth, posted a 91% increase in operating profit. Lotte Wellfood's operating profit rose 118%. Overseas subsidiaries in India and Kazakhstan led the results.
Lotte Chemical returned to the black in the first quarter for the first time in 10 quarters, but with global oversupply and a sluggish petrochemical market persisting, a full-fledged recovery remains uncertain. Strengthening competitiveness and reshaping the business portfolio to sustain profitability are strategic tasks.
The meeting was held behind closed doors. The chairman is expected to deliver messages at the end of the meeting on the group's second-half management policy, CEOs' roles, and leadership.