Lotte chief calls for structural overhaul as tough conditions persist

Lotte Group Chairman Shin Dong-bin (Lotte Group)

Lotte Group Chairman Shin Dong-bin issued a New Year's message Friday, calling for a decisive turnaround centered on qualitative growth as the group heads into another demanding year.

Shin said the prolonged effects of high inflation, high interest rates and a strong dollar -- combined with geopolitical risks -- continue to dampen consumer sentiment and push up raw material costs.

"These conditions make it imperative to pursue a turnaround focused on qualitative growth," he said, noting how rapid demographic change will force a fundamental reexamination of the group's core businesses.

"Organizations grow when individuals take ownership of challenges and engage deeply in solving them," he said, stressing that rigorous self-reflection and autonomy are what ultimately drive differentiated outcomes.

He also urged the group to strengthen its ability to anticipate change, calling for a more proactive approach to shifting political, economic, social and technological conditions.

Artificial intelligence, Shin said, should be embedded as a core capability across the group, enabling businesses to move beyond adaptation and take the lead in transformation.

He further emphasized execution, saying innovation within existing businesses must be carried out decisively to close the gap between strategy and results.

"This year must become a turning point that lays the groundwork for sustainable growth," Shin said.

Reaffirming customer value as the foundation of the group's competitiveness, Shin urged employees to translate that principle into concrete action.

"When we commit to delivering the highest value to customers and act on that commitment, our competitiveness naturally strengthens."

In the New Year's message, Shin also underscored the group's global momentum, pointing to Lotte Chemical's petrochemical project in Indonesia, Lotte Wellfood's new factory in Pune, India, Lotteria's expansion into the US and Malaysia, and the growing landmark presence of Lotte Mall West Lake Hanoi in Vietnam.