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Lotte Group to discuss cutting costs at upcoming executive meeting

Published: 07 Jan. 2025, 19:24

Lotte Group said on Jan. 7 that it would hold an executives' meeting to discuss this year's business strategies amid concerns over a potential liquidity crisis. [LOTTE CORPORATION]

Retail giant Lotte Group said Tuesday it would hold an executives' meeting this week to discuss this year's business strategies amid concerns over a potential liquidity crisis.

Some 80 executives, including Lotte Chairman Shin Dong-bin, will attend the first-half “value creation meeting” to discuss ways to ride out growing market uncertainty, a company spokesperson told Yonhap News Agency.

In his New Year's message to employees, Shin said the company would preemptively set up financial strategies to enhance the group's financial health this year.

The company needs to focus on generating new business models for growth and cutting costs to achieve a “meaningful result,” the chairman said.

In November, Lotte Group replaced 21 chief executive officers across its affiliates and subsidiaries in a sweeping leadership reshuffle.

The reshuffle came amid widespread rumors that the country's sixth-largest conglomerate by assets was grappling with a liquidity crunch, driven by the poor performance of its chemical and retail subsidiaries.

To reassure investors of its financial stability, Lotte Group announced plans to use its flagship skyscraper, the 6 trillion won ($4.3 billion) Lotte World Tower, as collateral for corporate bonds issued by Lotte Chemical.

The company also plans to sell noncore assets and pull out of duty-free operations overseas.

Yonhap