Korea’s Lotte Group begins third-generation succession

Shin Yoo-yeol, managing director of Lotte Chemical Corp. [Lotte Group]

Shin Yoo-yeol, managing director of Lotte Chemical Corp. and the eldest son of Lotte Group Chairman Shin Dong-bin, has become the chief executive officer (CEO) of Lotte Financial Corp. in Japan., signaling the beginning of third-generation succession at the retail conglomerate.

According to business circles on Monday, the younger Shin took the top position of Lotte Financial in the second quarter of this year, just one year after he became an executive of the company.

Lotte Financial, a Japanese-based affiliate of Lotte Group, is the largest shareholder, with 51 percent of the stake in Lotte Capital. Shin was one of the two executives at Lotte Financial, along with Kobayashi Masamoto who left the company later.

The junior Shin also serves as the co-CEO of Lotte Strategic Investment, along with the chairman. Lotte Strategic Investment is the largest shareholder of Lotte Financial with a 51 percent stake.

The younger Shin has been expanding his reach into Lotte Group since the second half of last year. He accompanied his father on a business trip to Southeast Asia in September last year and engaged in business activities for major units of Lotte Group.

He is expected to participate in the Value Creation Meeting (VCM) attended by the heads of group affiliates that is scheduled for July 18.