Heads of 3 Business Units Retained
Lotte Group conducted a regular year-end executive reshuffle at its 35 affiliates in the distribution, food, chemical and hotel sectors on Nov. 26.
The group reduced the number of executives by 20 percent compared to 2019. It had about 30 percent of the executives step down and limited the number of newly appointed executives to only 10 percent of the total. As a result, the number of executives shrank by about 100.
It is notable that a large number of young executives have been promoted. Yet the heads of three of the group’s four business units (BUs) were retained. Lee Young-ho, the head of the Food BU, was the only exception. However, the number of CEO-level replacements decreased compared to 2019. In 2019, 22 new CEOs were appointed but in 2020, the figure dropped to 13.
Kang Hee-tae, vice president of the Distribution BU, who doubles as the CEO of Lotte Shopping and Lotte Asset Development, has retained his post. Kang received a good evaluation for his intensive restructuring of the two companies. Kim Kyo-hyun, head of the Chemical BU, will also serve another term. Hotel BU President Lee Bong-chul, who was appointed in March 2020, stayed with his job. Lee faces the task of listing Hotel Lotte on the stock market.
Meanwhile, Lotte has reduced the level of executive positions from previous six to five, and reduced or abolished age and service year limits for annual promotions. It allows the appointment of young talents as CEOs. With the abolishment of age and service year limits for presidential posts, vice-presidents can be promoted to presidents in a year. Two deputy director positions have been merged into one deputy director position.
"In this personnel reshuffle, many young executives in their early 50s have been appointed as CEOs,” Lotte Group said. “It reflects chairman Shin Dong-bin's determination to overcome the crisis by deploying young managers who can quickly grasp the needs of the market and actively find new growth engines on the front lines."