'Not even trying is the same as failing': Lotte chief tells his C-suite to step it up

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'Not even trying is the same as failing': Lotte chief tells his C-suite to step it up

Published: 17 Jul. 2025, 18:28 Updated: 17 Jul. 2025, 19:19

Audio report: written by reporters, read by AI

Lotte Chairman Shin Dong-bin delivers a message on the group’s management policy and the role and leadership of CEOs during the 2025 second-half VCM at Lotte's human resources development center in Osan, Gyeonggi, during a two-day meeting that began on July 16. [LOTTE]

Lotte Group Chairman Shin Dong-bin delivered a blunt message to his top brass during the group's biannual executive meeting: Anticipate change or risk irrelevance.

“A fatal mistake in corporate management is ignoring a known problem, or failing to recognize one in the first place,” Shin told senior executives at Lotte’s biannual Value Creation Meeting (VCM), which runs through Friday at the group’s human resources development center in Osan, Gyeonggi. “A CEO must anticipate changes in the business environment five to 10 years ahead and plan not only for the present, but also for what must be done three years from now.”

The VCM — formerly called the president’s meeting — gathers around 80 top executives, including affiliate heads, to set groupwide management strategy. This year’s session stretched into a two-day event for the first time, a shift Lotte described as reflecting a “crisis management environment.” In previous years, the meeting was a half-day affair at Lotte World Tower in Jamsil, southern Seoul.

The tone was serious throughout, according to a Lotte Group spokesperson. Shin delivered a candid assessment of the group’s performance during the first half of the year and called on all CEOs to acknowledge their responsibility.

The chairman highlighted the need for PEST-based management — an analytical framework that evaluates political, economic, social and technological factors affecting business — to strengthen competitiveness.

“The brand is the foundation of our business competitiveness and a value that has been built up over time,” he said, urging executives to enhance brand value as a means of overcoming uncertainty and restoring the group’s core strength.

Shin also instructed leaders to swiftly implement strategic initiatives under each business division and to focus on improving productivity by enhancing employees’ job expertise and fostering a performance-based HR system. He further encouraged proactive use of artificial intelligence to drive a more agile and efficient work culture.

“The business environment is constantly changing, offering us both risks and opportunities,” he said. “Not even trying is the same as failing. I ask everyone to take the lead for the sake of the group’s future.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KYUNG-MI [[email protected]]