Lotte Leaders Step Up with Tense Resolve... Foreign AI Experts Invited to Develop Survival Strategy (Comprehensive)

Lotte Kicks Off Second-Half VCM

Silent on AI Strategy and Competitiveness Plans

Showcasing AI Agents and Sharing AX Initiatives Expected

The Lotte VCM (Value Creation Meeting, formerly Presidents’ Meeting), presided over by Lotte Group Chairman Shin Dong-bin, opened at 2 PM on July 15 at Lotte World Tower in Songpa-gu, Seoul. With around 80 CEOs from the group’s key affiliates gathered in one place, this meeting focused on management innovation and enhancing business competitiveness using artificial intelligence (AI).

From two hours before the VCM began, a sense of tension permeated the Signiel Hotel lobby inside Lotte World Tower. Around noon, the press line was set up, and at 12:15 PM, Kenichi Tamatsuka, CEO of Lotte Holdings Japan, was the first to arrive.

Soon after, major affiliate CEOs including Hyunseok Jung, CEO of Lotte Department Store; Jaeyoung Park, CEO of Lotte JTB; Kiho Jeong, CEO of Lotte Trading; Woohyun Joo, CEO of Lotte Chemical Advanced Materials; Byungkoo Kang, CEO of Lotte Global Logistics; Jungho Seo, CEO of Lotte Wellfood; Seungmin Lee, CEO of Lotte Aluminium; Dongha Kim, CEO of Lotte Duty Free; and Daeil Kim, CEO of Korea Seven, followed and headed to the meeting venue in succession.

Hyunseok Jung, CEO of Lotte Department Store. VCM Joint Press Team

When the press asked questions such as "How are you planning your AI strategy?" and "What are your plans for enhancing competitiveness?", the participants did not provide answers, instead hastening their steps with rather stern expressions.

It is reported that Chairman Shin Dong-bin and his eldest son, Yu-Yeol Shin, Executive Vice President and Head of Future Growth at Lotte Holdings, entered the meeting room directly from within the building rather than from outside.

The most notable feature of this VCM is that AI has become a fully established core agenda in group management. For the first time, Lotte exhibited over ten types of AI agents currently being applied to affiliate businesses, such as price monitoring, demand forecasting, and global market analysis. This move is seen as not merely a technological introduction but reflecting the intention to share use cases across affiliates and expand their adoption group-wide.

External lectures were also organized around the theme of AI. Futurist and management consultant Doug Stephens provided insights to executives regarding AI trends and the global market environment. Stephens is well-known for consulting global retail companies like Google, IKEA, and Walmart on brand strategies. This was also the first time Lotte invited a foreign speaker to the VCM.

Daeil Kim, CEO of Korea Seven. VCM Joint Press Corps

The business sector views this VCM not just as a discussion on adopting AI technology, but as a turning point for concretizing the group’s growth strategy following rebalancing. As the main businesses such as distribution and chemicals are facing profitability pressures due to sluggish market conditions and intensified competition, the group’s intention is said to be using AI as a key tool for cost savings, advanced decision-making, and productivity improvement to deliver tangible management results.

In fact, the mood of this year’s first-half VCM was also tense. At that time, Chairman Shin mentioned the group’s slowing growth and business portfolio imbalance, stating, "In order for the group to overcome tough conditions and grow further, strengthening business competitiveness must come first." Unlike the first half’s emphasis on improving affiliate business structures and enhancing execution, this meeting is expected to present more concrete action items focused on productivity innovation and competitiveness recovery through the use of AI.

Meanwhile, at the end of today’s VCM, Chairman Shin is set to announce the group’s management direction and key strategies for the second half of the year. He is also expected to deliver a message regarding the leadership and execution required of the CEOs. Once again, following up on the first half, he is likely to stress the need for group renewal and transformational change, strongly urging affiliate CEOs to pursue more robust innovation and deliver results.

This content was produced with the assistance of AI translation services.