Lotte Group chief calls for innovation, AI transformation

[Courtesy of Lotte]

Lotte Group Chairman Shin Dong-bin urged chief executive officers of its business units to commit further to innovation for growth.

“Failure to innovate may be destructive to us – take innovative opportunities,” Shin told the CEOs on Thursday during the Value Creation Meeting for the first half of 2024.

More than 80 executives attended the meeting to discuss future plans, including Lotte Corp. Vice Chairman Lee Dong-woo and Shin Yoo-yeol, head of Lotte Corp’s Future Strategy Office and the eldest son of Chairman Shin.

In his speech, Shin described 2024 as an unpredictable year due to multiple factors, including weak growth, global economic downturn, and geopolitical risks at home and abroad.

He introduced four strategies for 2024 – gaining a competitive edge across sectors, expanding global business, greater investment and well-balanced risk management.

Executives also discussed artificial intelligence (AI). Shin urged the executives to use generative AI as a tool to generate innovation.

“AI shouldn’t be seen only as a means that helps boost work efficiency,” Shin said. “It should be seen as one that enhances fundamental competitiveness from the view of innovation.”

Industry observers noted that Shin’s emphasis on innovation comes as Lotte Group grapples with uncertainty.

Lotte Engineering & Construction Co. had 5.4 trillion won ($4.02 billion) in contingent liabilities associated with project financing (PF) loans as of the end of 2023, double than its equity capital of 2.7 trillion won as of the end of September 2023, according to data from NICE Investors Service Co.