Lotte Group Chairman Shin Dong-bin reviews an AI system for plastic colors at Lotte World Tower in Seoul on January 9. (Lotte Corp)

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Lotte Group Chairman Shin Dong-bin emphasized a heightened sense of crisis and called for significant reforms during the group’s semi-annual Value Creation Meeting (VCM) held in Seoul on Thursday.

The VCM, presided over by Shin, was convened 7 to 10 days earlier than usual, reflecting the urgency within the group.

Over 80 executives attended, including Vice President Shin Yu-yeol, Chief Executive Officer Lee Dong-woo, and Lotte Corp.’s Head of Management Innovation Office Rho Joon-hyung.

Shin described 2024 as “one of the most challenging years in the group’s history.”

He underscored the need to enhance core business competitiveness to improve profitability, alongside swift actions such as asset sales and revaluation to rebuild market trust.

Shin outlined key management directives for the year, urging executives to establish ambitious goals, drive business structure innovation, and develop global strategies.

He emphasized the importance of breaking away from traditional approaches, even for flagship businesses, and encouraged a fresh perspective to redefine and adjust business models.

“The root cause of our current difficulties lies not in external conditions but in the declining competitiveness of our core businesses,” Shin said, calling for “bold goals, specific plans, and relentless effort to achieve them.”

Shin also highlighted the need for global competitiveness amid low domestic growth prospects.

“Considering the outlook for Korea‘s economy and population, overseas market expansion is the most critical objective for the group’s future growth,” the chief said.

Shin demanded decisive organizational improvements, reportedly delivering strong criticism to underperforming affiliate CEOs.

Prior to the VCM, Lotte introduced an Artificial Intelligence (AI) Task Showcase, featuring AI-driven innovations across the group.

Shin toured the showcase, experienced technology demonstrations, and provided direct feedback to affiliates.