Lotte replaces 21 CEOs as rumors of cash crunch swirl

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Lotte replaces 21 CEOs as rumors of cash crunch swirl

Published: 28 Nov. 2024, 18:18 Updated: 28 Nov. 2024, 19:25

CHO YONG-JUN
[email protected]

From left: Lotte Group Chairman Shin Dong-bin's son Shin Yoo-yeol, was promoted to the executive vice president of Lotte Corporation; Lotte Corporation Vice President Rho Jun-hyung was promoted to president, and Vice President and CEO Lee Young-jun, who led lotte Chemical's advanced materials department, was promoted to president of Lotte Chemical [LOTTE]

Lotte Group will replace 21 affiliate CEOs in the latest annual reshuffle announced Thursday following stagnant growth and recent reports of a liquidity crisis at the conglomerate's chemical subsidiary.

Thirteen CEOs under Lotte’s chemistry business, including Lotte Fine Chemical, were replaced in the reshuffle.

Vice President and CEO Lee Young-jun, who led Lotte Chemical Advanced Materials, was promoted to president of Lotte Chemical, in charge of the company’s entire chemistry business. Lee, described by Lotte as “an expert in chemistry and materials,” will be seeking radical business reforms to have the company focus more on high-value products.

The current president, Lee Hun-ki, will be stepping down, taking the responsibility for the company’s plunging earnings at Lotte’s chemical business and acquisition failures during his stint at Lotte Corporation.

Shin Yoo-yeol, head of the company's Future Growth Office and son of Lotte Chairman Shin Dong-bin, has been promoted to executive vice president and assigned to spearhead Lotte’s overseas and future businesses.

The group-wide major reshuffle reduces the total number of Lotte Group and its subsidiaries’ executives by 13 percent compared to last year's.

Lotte Corporation’s Vice President and Chief Strategy Officer Rho Jun-hyung was promoted to the president of the holdings company, with Rho taking the role of overseeing the subsidiaries.

Lotte Corporation Executive Vice President Jung Ho-suk will take the role as the CEO of Lotte Hotel, which owns the Lotte World amusement parks and Lotte Duty Free.

The conglomerate has been fighting rumors of Lotte Chemical facing a liquidity crisis since the rumor surfaced in mid-November. Lotte admitted that Lotte Chemical's profit had declined in recent times due to oversupply but denied the reported liquidity problems on Nov. 18, assuring investors that it maintained stable liquidity and the firm had enough cash. Lotte Corporation, a holdings unit, announced plans to increase its cash dividends and consider canceling its treasury stocks on Wednesday.

The holdings company also said Wednesday that it would pledge Lotte World Tower, Korea’s tallest skyscraper, as collateral to secure its bonds.

BY CHO YONG-JUN [[email protected]]