Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Lotte chief aims to find new growth engines in health care, mobility
By Kim Hyun-bin
Lotte Group Chairman Shin Dong-bin hosted the 2023 Second Half Value Creation Meeting (VCM) at Lotte World Tower in Seoul, Tuesday, to discuss the group's management and medium- to long-term strategies and find new growth engines in the fields of health and wellness and mobility, according to company officials.
The VCM was attended by 80 people including Chairman Shin Dong-bin, Lotte Holdings CEO Lee Dong-woo, heads of various business divisions, subsidiary representatives and Lotte Holdings executives.
Lotte Group Chairman Shin Dong-bin
By Kim Hyun-bin
During the VCM, Lotte will assess external factors promoting changes in the corporate management environment, such as increased geopolitical uncertainty, low birth rate, aging population and digital transformation. They also explored strategies for sustainable growth.
The company invited external experts to speak on global economic paradigm changes and outlooks as well as the meaning and business implications of generative AI. Lee Dong-woo, CEO of Lotte Holdings, gave an overview of the first half of the year's management performance, overseas business strategies and efficient investment execution as guidelines for sustained growth.
Additionally, Lotte plans to share the status and plans for fostering new growth engines, such as health and wellness and mobility initiatives.
Lotte Biologics aims to become one of the top 10 global contract development and manufacturing organizations (CDMO) by 2030. It plans to establish three domestic mega plants by 2030, with a total production capacity of 360,000 liters of antibody drugs. Each plant will be capable of producing 120,000 liters of antibody drugs, and the company will also add small-scale culture facilities and finished pharmaceutical product facilities for clinical material production.
Lotte Biologics has chosen Incheon's Songdo as the hub for these medium- to long-term plans. In June, it signed a four-party agreement with Lotte Holdings, Incheon Metropolitan City and the Incheon Free Economic Zone Authority to expedite the construction of domestic biopharmaceutical production facilities.
Lotte Healthcare, another division of Lotte focusing on health and wellness, is preparing for the grand opening of its health care platform in September. The platform will provide comprehensive services, including healthy functional foods, exercise equipment and customized diets, based on data analysis from genetic tests and health examinations.
In the mobility sector, Lotte Information & Communication is strengthening its capabilities in autonomous shuttles, electric vehicle (EV) charging infrastructure and urban air mobility (UAM) projects.
Furthermore, the heads of each major business division presented strategies to enhance corporate competitiveness. In the food division, they discussed improving profitability through advanced value chain development, expanding global operations and securing future growth drivers through food tech.
The distribution division will focus on discussing strategies to achieve its vision of becoming customers' first shopping destination through enhancing its portfolio, to include services such as lifestyle, groceries, and data commerce.
The chemical division will share strategies to enhance existing business competitiveness and foster new businesses, such as battery materials and hydrogen ammonia.