Shin Dong-bin, chairman of Lotte Group, on the 15th said, "Tradition should not be a ceiling that confines limits but a starting line for new innovation," calling for strengthening fundamental competitiveness.
Shin said this at the "2026 second-half VCM (Value Creation Meeting, formerly the presidents' meeting)" held in the afternoon at Lotte World Tower in Jamsil, Songpa District, Seoul, noting, "Overall performance across the group has improved, but the view of the external capital market remains unsparing."
About 80 people attended the meeting presided over by Shin, including the CEO and Deputy Minister of Lotte Corporation, the heads of business divisions, and CEOs of major affiliates. Shin's eldest son, Shin Yoo-yeol, executive vice president and head of Lotte Corporation's Future Growth Office and co-CEO of Lotte Biologics, was also present.
Shin predicted that in the second half, geopolitical risks will expand and the pace of technological development, including artificial intelligence (AI) agents, will accelerate further. He asked CEOs to analyze and respond to the business environment from the political, economic, social, and technological (PEST) perspective.
Assessing that the competitiveness of the group's core businesses has stagnated over the past 10 years, he cited as key tasks for strengthening fundamental competitiveness: ▲ selection and concentration ▲ relentless improvement and innovation ▲ fidelity to management basics. He stressed that noncore businesses should be boldly streamlined while enhancing the competitiveness of core brands, and that the group must also focus on customer-centered management, thorough investment feasibility verification, and securing financial soundness.
Shin said, "CEOs must present a clear vision, relentlessly improve from the customer's point of view, and innovate boldly to keep their organizations evolving continuously."
Shin's message also dovetails with the business restructuring the group is pursuing. Since the end of 2024, Lotte has been reattempting the sale of Lotte Rental under an emergency management regime, and Lotte Chemical(011170) is pushing ahead with the sale of noncore asset and the reorganization of its business portfolio.
Earnings by affiliate are mixed. Lotte Shopping(023530), Lotte Chilsung Beverage(005300), and Lotte Wellfood(280360), helped by growth in department stores and overseas businesses, improved profitability in the first quarter of this year. By contrast, Lotte Chemical returned to the black for the first time in 10 quarters, but a full-fledged recovery remains a challenge due to global oversupply and a sluggish petrochemical market.