Chairman Shin Dong-bin. (Lotte)

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Lotte Group has announced plans for bold reforms and restructuring as it faces worsening internal and external business conditions across its key sectors, including petrochemicals.

Lotte Group announced on Thursday that it held a two-day 2025 H2 Value Creation Meeting (VCM) on Wednesday at the Lotte Academy Osan Campus in Gyeonggi Province.

VCM is a semi-annual strategy session attended by Chairman Shin Dong-bin, his son and vice president Shin Yoo-yeol, and over 80 executives from group affiliates.

It serves as a forum to discuss Lotte’s mid-to-long-term strategy and management policies.

During the meeting, Chairman Shin emphasized that “CEOs must anticipate what the business environment will look like 10 years from now and swiftly execute current strategies.”

He stressed that overcoming the crisis and achieving growth would require two pillars – long-term future forecasting and agile execution.

Given the heightened sense of crisis within and outside the group, the VCM reportedly maintained a serious and heavy tone throughout.

“In a rapidly changing era, staying the same is dangerous,” Shin said.

He urged leaders to build strategies based on future predictions and ensure prompt execution.

He specifically highlighted the importance of PEST analysis – a strategic management tool that evaluates external factors in terms of politics, economics, society, and technology.

“The most fatal mistake in business management is ignoring known problems or failing to recognize issues as problems,” Shin said.

He stressed that CEOs should be preparing not only for what needs to be done now but also what will be needed three and even 10 years down the line.

Lotte’s management policy for the second half of the year, aimed at overcoming uncertainty and restoring core competitiveness includes enhancing brand value, accelerating strategy execution by business unit, and improving productivity.

“The brand is the foundation of our business competitiveness and a key value we’ve accumulated over time,” Shin said.