Lotte Group Reveals Innovation Plans, Chairman Looks Into Mobility, Health Care as New Growth Engines

Lotte Group will look for new growth engines, and its chairman Shin Dong Bin said they will especially focus on mobility and the healthcare sector for this. The chief said they are making this move as the company is facing an unfavorable business environment following the credit downgrades of its affiliates.

Lotte Group’s chairman shared this plan with the public during the 2023 Second Half Value Creation Meeting (VCM) which he personally hosted at the Lotte World Tower in Seoul on Tuesday, July 18. He organized this event to talk about the company’s management as well as their medium to long-term strategies.

Shin also mentioned the Lotte Group’s goal to find new growth engines with a focus on mobility and health, and wellness. According to The Korea Times, around 80 executives attended the VCM event led by Chairman Shin. The CEO of Lotte Holdings, Lee Dong Woo, was also there, along with heads of different business units, subsidiary representatives, and executives of Lotte Holdings.

With the company’s plans to expand its health and wellness unit, officials have naturally tackled some issues in South Korea, including the aging population and low birth rate, to assess what Lotte can do. They also touched on the subject of digital transformation, changing corporate management environments, and sustainable growth.

As part of the Lotte Group’s move to facilitate new growth engines in the area of health and wellness, its Contract Development Manufacturing Organization (CDMO) unit, Lotte Biologics, will expand its business to be included in the world’s top 10 by 2030.

To do this, it will build three mega plants in the country within seven years with a target total production capacity of 360,000 liters of antibody drugs. Lotte will also set up small-scale and finished pharma facilities to produce clinical materials.

“Ignoring the rapidly changing business environment and stubbornly sticking to past successes won’t work any longer,” The Korea Economic Daily quoted Shin Dong Bin as saying. “We must create our own ways of work that align with the current environment through flexible thinking. You cannot survive unless you try something new.”

Photo by: Lotte Newsroom