Lotte Group Chairman Shin Dongbin: "Business Stagnant for 10 Years... We Must Reinforce Fundamental Competitiveness"

Second-Half VCM Held on July 15

"Tradition Is Not a Growth Ceiling, but a Starting Line for New Innovation"

Shin Dongbin, Chairman of Lotte Group, called for the "reinforcement of fundamental competitiveness" at the second-half Value Creation Meeting (VCM, formerly the Presidents' Meeting) on July 15. He stressed the importance of securing intrinsic competitiveness by staying faithful to the basics of business, emphasizing that this is necessary for the group’s core businesses—now in a mature phase—to gain new momentum for growth.

On this day, Lotte Group held the 2026 Second-Half Lotte VCM (Value Creation Meeting, formerly the Presidents' Meeting) at Lotte World Tower in Songpa-gu, Seoul, presided over by Chairman Shin.

The VCM is the group’s top management meeting, held every first and second half of the year, where Chairman Shin, the CEO of Lotte Corporation, and over 80 affiliates’ CEOs gather to review management strategies and major issues.

Shindongbin, Chairman of Lotte. Lotte

Chairman Shin, who presided over the meeting, reflected on the first half of the year and pointed out that although the group's overall performance has improved, the external capital market's perspective remains harsh. In particular, Chairman Shin expressed concern that the group’s business competitiveness has stagnated over the past ten years, and he repeatedly emphasized the importance of strengthening fundamental competitiveness focused on three key themes: selection and concentration, relentless improvement and innovation, and strict adherence to management fundamentals.

He stated, "Specifically, we must enhance profitability and competitiveness by streamlining non-core businesses that do not align with the group's strategic direction," and urged, "To strengthen our global competitiveness, we need to elevate the value of our key brands." Chairman Shin further emphasized, "We should remain loyal to management fundamentals such as customer focus and profit generation," and added, "Investments should be executed only after rigorous validation of feasibility and profitability, and within a scope that maintains financial soundness."

Chairman Shin also presented cases of innovation in traditional industries, underscoring the necessity for innovation within the group to ensure sustainable growth. He remarked, "Tradition should not be a ceiling that limits us but rather a starting line for new innovation," and insisted, "CEOs must provide a clear vision, carry out constant improvements from the customer’s perspective, pursue bold innovation, and continuously evolve the organization."

Meanwhile, Chairman Shin predicted that in the second half of the year, uncertainties caused by global geopolitical issues will grow, and the pace of technological advancement—including AI agents—will accelerate. Notably, before the VCM, he directly reviewed the current status and practical cases of AI agent adoption within the group. By reviewing more than ten AI agents currently being utilized in areas such as demand forecasting and global market trend analysis, Shin demonstrated his commitment to implementing an AI-driven culture throughout the entire group.

External lectures at the event also centered around AI. Futurist and business consultant Doug Stephens provided management with insights on evolving AI trends and the global market environment. Stephens is renowned for consulting on brand strategies for leading global retail companies such as Google, IKEA, and Walmart. This was the first time Lotte invited a foreign speaker to deliver a lecture at the VCM.

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