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Lotte World Tower (Photo courtesy of Lotte Corporation) |
[Alpha Biz= Reporter Kim Jisun] Executives from Lotte Holdings, Lotte Chemical, and Lotte Fine Chemical have begun voluntarily returning a portion of their salaries this month as part of responsible management efforts.
According to industry sources on the 11th, Lotte Holdings executives are returning 20-30% of their salaries, while executives from chemical subsidiaries are returning 10-30%. The duration of these reductions has not yet been determined.
This move reflects the commitment of Lotte Group’s leadership, including Chairman Shin Dong-bin, to demonstrate leadership amid challenging market conditions in the petrochemical industry and heightened external uncertainties.
Lotte Chemical reported a 3rd-quarter operating loss of 413.6 billion KRW ($309 million), a reversal from a 42.6 billion KRW profit a year earlier, though revenue rose by 5.6% to 5.2 trillion KRW. Lotte Fine Chemical saw a 4.8% revenue increase to 420.4 billion KRW but a 70.7% decline in operating profit to 10.3 billion KRW.
Lotte has been implementing emergency measures in response to these challenges, with Lotte Duty Free entering emergency management in June, followed by Lotte Chemical in July. Additionally, Lotte Holdings shifted to emergency operations in August, increasing support across subsidiaries.
The group has also carried out voluntary retirement programs to optimize workforce efficiency, with Lotte On (June), Lotte Duty Free (August), and Seven-Eleven (October) already implementing such measures, and Lotte Hotels & Resorts accepting applications until November 22.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
