2024-07-20 00:38:33
Lotte executives’ meeting held in a solemn atmosphere
“Please conduct a more detailed and thorough business review when making major investment decisions.”
Lotte Group Chairman Shin Dong-bin urged executives to “exercise strong execution” with these contents as the main point at the “2024 First Half Lotte VCM (Value Creation Meeting, formerly the President’s Meeting)” held at Lotte Hotel World in Songpa-gu, Seoul on the 19th. He emphasized, “External risks such as high interest rates and geopolitical issues have increased compared to the past,” and “Although the management environment is uncertain, we ask that you be alert to achieve management goals and make a leap forward again.”
Chairman Shin ordered four management policies for the second half of the year to overcome Lotte Group’s slump: △ strengthening the fundamental competitiveness of existing businesses, △ generating stable profits from global businesses, △ expanding high value-added businesses for future growth, and △ strengthening financial soundness management.
The VCM, which started at 1 p.m. that day, was attended by about 80 people, including Chairman Shin, heads of business divisions, and representatives of affiliates. Chairman Shin’s eldest son, Shin Yoo-yeol, head of Lotte Holdings’ Future Growth Office (executive director), has also been attending the meeting since last year. Lotte Group is also speeding up its management succession, such as by recently appointing Executive Director Shin as an inside director of Lotte Holdings Japan. Executive Director Shin quickly moved to the meeting location with only a faint smile when asked about “future food.” It is reported that he did not make any separate statements during the meeting, as he had done before.
This VCM included an external lecture on the topic of ‘Cases of overcoming crises and making a comeback for startups’, review of the management performance for the first half of the year (January to June), sharing of management policies for the second half of the year (July to December), and announcement of management strategies by business unit. Lotte Innovation, which has secured the group’s overall artificial intelligence (AI)-based technology, also had time to share strategies to strengthen execution capabilities using AI.
Chairman Shin cited the “Innovator’s Dilemma” and said, “Companies that do not innovate for the future will eventually lose their leading position,” and “We need to make efforts to strengthen our fundamental competitiveness in our existing businesses.” Following the first half, Chairman Shin emphasized the importance of AI in the second half VCM and cited it as a means of innovation. In addition, he introduced businesses in India and Southeast Asia that produced significant results in the first half of this year.
Chairman Shin ordered the expansion of high value-added businesses across the group to achieve sustainable growth. He cited the group’s efforts to discover new growth engines, such as bio contract development and manufacturing organization (CDMO), electric vehicle battery materials, and electric vehicle charging service businesses.
The VCM, which discussed the group’s mid- to long-term strategy, was held in a serious atmosphere throughout. This is interpreted as being due to the poor performance of major affiliates, including Lotte Chemical, which was Lotte Group’s cash cow. Lotte Chemical has been posting operating losses since 2022. It posted an operating profit of 1.5356 trillion won in 2021, but recorded a deficit of 762.6 billion won in 2022 and a deficit of 347.7 billion won in 2023. Lotte Chemical also posted an operating loss of 135.3 billion won in the first quarter (January to March) of this year. According to financial information company F&Guide, the securities industry estimates that Lotte Chemical posted a deficit of 48.1 billion won in the second quarter (April to June) of this year.
Lotte Group held a startup event called ‘2024 Lotte Investment Showcase’ ahead of the VCM conference. This is to allow Lotte executives to directly experience the technologies of promising startups and find new business and investment opportunities with them. 16 promising startups in various fields such as AI-based content production, IoT-based micro stores, autonomous robots, and bio participated in the event.
Reporter Lee Min-ah [email protected]
-
- great
- 0dog
-
- I’m so sad
- 0dog
-
- I’m angry
- 0dog
-
- I recommend it
- dog
Hot news right now
2024-07-20 00:38:33