Lotte Group Restructures
Lotte Group, Korea's seventh-ranking conglomerate by assets, announced that it implemented the biggest personnel shake-up in its 38-year history.
The move involved 10 chief executives and 86 executives.
Industry observers say the major shuffle was carried out in line with Lotte Group Vice Chairman Shin Dong-bin's "reform-oriented" management.
Vice Chairman Shin took on significant managerial duties last October when he was appointed head of Lotte Hotel's policy division. This division also acts as the group's restructuring headquarters and is the control center of the business empire.
Former chief executive officer of Shinsegae Co.'s Westin Chosun Hotel, Jang Kyung-jak, was plucked to become CEO of Lotte Hotel Co. Of the 10 replaced CEOs, Lotte Group says three, including Jang, were scouted from other business groups.
Observers believe the placing of 62-year-old Jang from rival group Shinsegae is aimed at changing Lotte's "conservative" tendencies and bringing in a wind of change to its corporate culture.
About a fourth of Lotte's 38 affiliates have seen changes in management, with some replacements involving the removal of executives aged over 65 years. Industry observers view the replacements of former Lotte Hotel CEO Kwon Won-shik, 70, and former Korea Fujiflim Co. CEO Kim Young-jae, 69, as a generation shift in management.
Other Lotte affiliates that received new executives include Lotte Giants Co., Korea Seven Co., Lotte Industry Co., Lotte Cold Storage Co., Lotte Fresh Delica Co. and IYP&F, the conglomerate's pharmaceuticals and health foods division.
Observers also say promotions at Lotte Shopping Co. and Honam Petrochemical Corp. were keys to Shin's ambitious agenda to strengthen the growth engines of the business.
Shin's promotion last October stoked speculation that he is most likely to succeed his father Shin Kyuk-ho, the founder and chairman of the family-run conglomerate
The move involved 10 chief executives and 86 executives.
Industry observers say the major shuffle was carried out in line with Lotte Group Vice Chairman Shin Dong-bin's "reform-oriented" management.
Vice Chairman Shin took on significant managerial duties last October when he was appointed head of Lotte Hotel's policy division. This division also acts as the group's restructuring headquarters and is the control center of the business empire.
Former chief executive officer of Shinsegae Co.'s Westin Chosun Hotel, Jang Kyung-jak, was plucked to become CEO of Lotte Hotel Co. Of the 10 replaced CEOs, Lotte Group says three, including Jang, were scouted from other business groups.
Observers believe the placing of 62-year-old Jang from rival group Shinsegae is aimed at changing Lotte's "conservative" tendencies and bringing in a wind of change to its corporate culture.
About a fourth of Lotte's 38 affiliates have seen changes in management, with some replacements involving the removal of executives aged over 65 years. Industry observers view the replacements of former Lotte Hotel CEO Kwon Won-shik, 70, and former Korea Fujiflim Co. CEO Kim Young-jae, 69, as a generation shift in management.
Other Lotte affiliates that received new executives include Lotte Giants Co., Korea Seven Co., Lotte Industry Co., Lotte Cold Storage Co., Lotte Fresh Delica Co. and IYP&F, the conglomerate's pharmaceuticals and health foods division.
Observers also say promotions at Lotte Shopping Co. and Honam Petrochemical Corp. were keys to Shin's ambitious agenda to strengthen the growth engines of the business.
Shin's promotion last October stoked speculation that he is most likely to succeed his father Shin Kyuk-ho, the founder and chairman of the family-run conglomerate
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