[단독]“Let’s prepare for the corona again”…Shin Dong-bin, Lotte’s constitution improvement order

Lotte Group chairman Shin Dong-bin ordered each affiliate to “reset the management direction and push for improvement of the constitution with high intensity” at the presidents’ meeting held online on the 13th. More than 100 people attended the meeting, including Song Yong-deok and Lee Dong-woo, co-presidents of Lotte Holdings, as well as Kang Hee-tae, Lee Bong-cheol, Kim Gyo-hyun, and Lee Young-gu, heads of the business unit in the distribution, hotel, chemical and food sectors.

In the first and second half of each year, the Lotte Group meets with executives from affiliates to hold a presidential meeting to share goals and mid- to long-term growth strategies. The first half meeting will look back on last year’s business and discuss the group’s key issues and strategies this year.

It is said that Chairman Shin made a strong reprimand while listening to the reports of each affiliate on this day. One participant said, “Chairman Shin rebuked,’Reset the management direction for each affiliate, execution power is important. Lotte does not have a strategy, but nothing has been properly implemented.” Another executive attending the meeting said, “Chairman Shin said,’Please prepare firmly to respond to Corona 19 that will continue this year’, and “he asked us to establish a good mid- to long-term vision and, above all, create an organizational culture that can innovate.”

The Lotte Group suffered a direct hit from a novel coronavirus infection (Corona 19) last year, and the performance of its flagship distribution and chemical sectors was sluggish. In particular, as e-commerce companies such as Coupang and the People of Delivery were growing rapidly, Lotte, a traditional retailer, struggled. Chairman Shin’s reprimand is said to have come out of an order to change the constitution of Lotte, taking into account the situation where the distribution market is rapidly reorganized into e-commerce due to Corona 19. In November of last year, the Lotte Group reduced the number of executives by 100 people by conducting year-end greetings earlier than usual, and in particular, executives in their 50s were placed forward.

Chairman Shin emphasized in his New Year’s address on the 4th, “We must focus on creating synergy at the group level by combining the strengths and capabilities of each company. Let’s remove the obstacles that block synergy creation with strong execution power.” He also said, “We are proud that we have built up a strong competitive edge to lead the industry in various business fields, but let’s look back on whether our core competencies have worked out in an unprecedented situation.”

An official of the Lotte Group said, “Lotte suffered from’Brothers’ Difficulties’, and there is a feeling of crisis that the momentum has faded since 4-5 years ago, and there is a sense of crisis that continues to be pushed out of the competition.” In consideration of this, it seems that the new year has emphasized the sense of crisis.”

Reporters Lee Su-gi and Baek Min-jeong [email protected]