Food conglomerates to refine strategies during Chuseok

Lotte Group Chairman Shin Dong-bin (left) tours the Guylian chocolate production facility in Belgium in early September. (Lotte Group)

During the five-day Chuseok holiday, leaders of food and distribution conglomerates are anticipated to refine their management strategies for the second half of the year, focusing on enhancing profitability in a challenging business environment.

With the industry grappling with a downturn intensified by high prices and interest rates, the primary aim will be to devise measures to bolster profitability and navigate the performance crisis in the months ahead.

According to industry sources on Friday, Lotte Group Chairman Shin Dong-bin will visit Ulsan during the holiday to pay his respects at the memorial of Lotte Group founder and Honorary Chairman Shin Kyuk-ho. Following the event, Shin is expected to remain in the country to concentrate on his management strategy for the remainder of the year.

Subsequently, after Chuseok, he will travel to Korea and Japan to oversee key operations and address critical issues such as improving profitability and discovering new growth opportunities.

Shin’s recent initiative seeks to create more synergy between Lotte subsidiaries in Korea and Japan.

During his recent visits to food production sites in Belgium and Poland, Shin identified Lotte's chocolate snack Pepero as a strategic product and announced an aim to elevate it to one of the top 10 global brands in the segment, targeting sales of 1 trillion won ($750 million).

Shinsegae Group Chairman Chung Yong-jin is also expected to focus on management strategies during the holiday season, with particular attention on enhancing profitability.

The group is dedicated to improving the performance of its core affiliates this year by implementing cost-cutting measures, streamlining management and reorganizing personnel. Shinsegae's upcoming issue includes the appointment of executives, which is expected to take place around the end of October or early November.

Neither Shin nor Chung are expected to join the economic delegation accompanying President Yoon Suk Yeol on his visit to the Czech Republic from Sept. 19-22, shortly after Chuseok. Their participation in next month’s ASEAN economic delegation also remains uncertain.

CJ Group Chairman Lee Jae-hyun and Hyundai Department Store Chairman Chung Ji-sun are also likely to refine their management strategies during the holiday season, as told by industry sources.

By Kim Hae-yeon(hykim@heraldcorp.com)