Lotte Executives Return Part of Salaries for Responsible Management

Lotte Group has implemented responsible management measures to cope with the global economic downturn and sluggish business conditions, with executives voluntarily returning a portion of their salaries.

Executives from Lotte Holdings, Lotte Chemical, and Lotte Fine Chemical, among other chemical affiliates, have started returning 10-30% of their salaries this month, reinforcing an emergency management system.

According to the retail and chemical industries on the 11th, Lotte Holdings executives are returning 20-30% of their salaries, while executives of Lotte’s chemical affiliates are voluntarily returning 10-30%. This move demonstrates leadership's commitment to setting an example in uncertain economic conditions.

The salary returns are expected to continue indefinitely without a fixed end date.

Recently, Lotte Group has taken strategic steps to strengthen its core competitiveness, proactively responding to the changing business environment.

Lotte Chemical announced on the 7th that it posted an operating loss of KRW 413.6 billion in the third quarter of this year, marking a turnaround to a deficit. However, its revenue increased by 5.6% year-on-year to KRW 5.2 trillion.

Similarly, Lotte Fine Chemical reported a 4.8% year-on-year increase in third-quarter revenue but saw its operating profit drop by 70.7% to KRW 10.3 billion.

Meanwhile, key affiliates such as Lotte Duty Free and Lotte Chemical initiated emergency management systems in June and July, respectively.

Lotte Holdings also shifted to an emergency management system in August, focusing on enhancing management support and collaboration across affiliates and launching efficiency measures.

Lotte Group is also improving workforce efficiency by implementing voluntary retirement programs across its affiliates. Lotte On, Lotte Duty Free, and Seven Eleven have already introduced these measures, and Lotte Hotel & Resort is accepting applications for voluntary retirement until the 22nd of this month.

This initiative is seen as a strategic response by the group to explore new growth paths amid challenging business conditions.


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Lotte Executives Return Part of Salaries for Responsible Management